FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Majors Pairs Circling Lows Could Unlock Next Leg Higher for USD Index

FOREX
  • The greenback is firmer against all others in G10, with global equity futures modestly weaker and US treasury yields modestly on the front foot. The pullback in major pairs, including EUR/USD and GBP/USD, marks a resumption of the weakness off last week's highs and confirms Monday's bounce as corrective.
  • As such, EUR/USD eyes the weekly lows 1.0944 and GBP/USD bears look to support at 1.2763. Slippage below here will resume the downtrend in both pairs and could open the next leg higher for the USD Index. 100- and 50-dma resistance just above is the next upside level to note at 102.39 and 102.49 respectively.
  • CNH slipped overnight on the poorer-than-expected Caixin PMI release, which unexpectedly signaled contraction of 49.2 against 50.1 forecast. New home sales data were also a soft spot, with the value of new home sales down over 33% on the year. USD/CNH is pressing to new daily highs, with spot now approaching horizontal congestion resistance at 7.1774-78. Today's move higher has also topped the 50-dma of 7.1714 and a close above this mark today would be a bullish development.
  • ISM manufacturing for July takes focus after yesterday's MNI Chicago PMI came in slightly below expectations. Fed's Goolsbee is set to speak, however only welcoming remarks are scheduled, meaning policy commentary could be limited.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.