November 15, 2022 13:55 GMT
Sharp Kneejerk Lower For Greenback Following US Data
- US OCT. PRODUCER PRICES RISE 8.0% Y/Y; EST. 8.3% (BBG)
- US OCT. PRODUCER PRICES RISE 0.2% M/M; EST. 0.4% (BBG)
- USD: Sharp kneejerk reaction lower for the greenback following the data with the likes of USDMXN and USDZAR pushing to recent lows and aided by the supportive price action for major equity indices.
- USDZAR briefly tested below trendline support at 17.1587, drawn from the Apr 13 low. A sustained break of this line would strengthen bearish conditions, paving the way for a move to 16.9818 initially, the Sep 13 low.
- USDMXN also traded to a fresh low of 19.2509, continuing the optimism for the Peso. Moving average studies remain in a bear mode position, highlighting the current sentiment. 19.4136, the May 30 low, has been breached which opens 19.1560, the Mar 3 2020 low ahead of 19.0000.