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Month-end Flow Reverses Stronger Start for USD

FOREX
  • EUR/USD hit new cycle lows of $1.1704 early Wednesday before price action reversed and USD weakness is seen across the G10 board. Month-end flows likely picking up, with continue to point toward general USD sales into the month-end fix against most others except for JPY. The JPY selling signal is playing out this morning, with USD/JPY touching new 2021 highs and narrowing the gap with Y111.00.
  • NOK and GBP are moderately stronger so far. The price action has helped press EUR/NOK to the lowest levels of the year, touching 10.0030. A break below the 10.00 handle would be the first since early last year.
  • Focus turns to US ADP Employment Change numbers, the MNI Chicago Business Barometer, pending home sales numbers and Canadian GDP for January. US President Biden also speaks on his economic plans for the US. Reports this morning see Biden announcing plans for a $2.25 trillion economic plan, with the spending offset by a hike in the corporate tax rate to 28%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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