Free Trial

USD Gains Short-Lived, DXY Hovers Above Multi-Month Low

FOREX
  • The USD started the Wednesday session particularly well, rallying against all others pushing the USD Index firmly back above the 90.00 handle. The gains were short-lived however, as NY traders responded with waves of USD sales against the rest of DM and GBP in particular.
  • GBP/USD's near 80 pip rally off the day's lows was aided by continued confidence from UK PM Johnson that the UK remains on course for a full economic reopening in just over 2 weeks. While UK COVID figures were unable to maintain the streak of 0 daily fatalities, the continued stability in hospital admissions is giving cause for confidence.
  • CAD, GBP and NOK were the session's best performers, while JPY, NZD and AUD all traded weaker.
  • Markets watch the release of ADP employment change, weekly jobless claims and ISM services data on Thursday. The manufacturing ISM earlier this week showed a sharp slowdown in the employment subcomponent, raising focus for Friday's nonfarm payrolls release, in which markets see net gains of around 650k jobs.
  • China's Caixin services and composite PMIs are due as well as speeches from BoE's Bailey, Fed's Bostic, Kaplan, Harker and Quarles.

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.