MNI: PBOC Net Drains CNY716.5 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1693 Weds; -1.18% Y/Y

MNI: Fed In No Hurry, Cuts Likely Over Medium-Term - Jefferson

MNI CNB WATCH: Steer Means 25Bps Cut To 3.75% "Very Likely"

MNI BRIEF: US Treasury Lowers Q1 Borrowing Estimate By $9B

MNI BRIEF: Fed's Bostic In Wait And See Mode On Rates

EZ/UK T-Bill Calendar: 3/6/12-Month EU-Bills Auction Wednesday

EZ/UK Bond Supply Calendar: Green Gilt Auction on Wednesday

EZ/UK Bond Supply Calendar: Green Gilt Auction on Wednesday

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

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

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: USD Index Edges Further South, Now Lower on Week

FOREX
EM BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Currency market volatility was relatively subdued on Tuesday, in contrast with the sharp swings seen throughout Monday’s session. However, the USD index spent the majority of the session on the backfoot, consistently edging lower and extending session declines from the overnight highs to around 1%.
  • Despite the significant greenback surge to start the week, the DXY is now lower on the week with multiple factors weighing throughout the session. Primarily, broader optimism surrounding trade/tariff negotiations has boosted equities, supporting risk sensitive currencies in tandem. Secondly, Trump's hardline approach on Iran has assisted the push lower in the front-end of the US yield curve and, in turn, has pressured the greenback.
  • Aside from Scandies which lead G10 FX gains, the Canadian dollar and the Swiss Franc also moderately outperform. Broad dollar weakness however keeps the likes of EUR, AUD and CNH all on the front foot, registering gains of around 0.3% on the session.
  • For now, EURUSD gains are considered corrective, however the powerful recovery from yesterday’s cycle lows has seen the pair breach initial resistance at 1.0350, the Jan 31 low and Monday’s high. A stronger recovery would place the focus on 1.0446, the 50-day EMA and then 1.0533, the Jan 27 high and a key resistance.
  • There was also a notable turnaround for USDJPY, which after printing a 155.52 high, traded as low as 154.26, keeping a developing bear threat for the pair in play and focus on a cluster of daily lows just below the 154.00 handle.
  • New Zealand unemployment headlines the APAC docket on Wednesday, before the focus turns to US ADP employment and ISM Services PMI. 
265 words

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.
  • Currency market volatility was relatively subdued on Tuesday, in contrast with the sharp swings seen throughout Monday’s session. However, the USD index spent the majority of the session on the backfoot, consistently edging lower and extending session declines from the overnight highs to around 1%.
  • Despite the significant greenback surge to start the week, the DXY is now lower on the week with multiple factors weighing throughout the session. Primarily, broader optimism surrounding trade/tariff negotiations has boosted equities, supporting risk sensitive currencies in tandem. Secondly, Trump's hardline approach on Iran has assisted the push lower in the front-end of the US yield curve and, in turn, has pressured the greenback.
  • Aside from Scandies which lead G10 FX gains, the Canadian dollar and the Swiss Franc also moderately outperform. Broad dollar weakness however keeps the likes of EUR, AUD and CNH all on the front foot, registering gains of around 0.3% on the session.
  • For now, EURUSD gains are considered corrective, however the powerful recovery from yesterday’s cycle lows has seen the pair breach initial resistance at 1.0350, the Jan 31 low and Monday’s high. A stronger recovery would place the focus on 1.0446, the 50-day EMA and then 1.0533, the Jan 27 high and a key resistance.
  • There was also a notable turnaround for USDJPY, which after printing a 155.52 high, traded as low as 154.26, keeping a developing bear threat for the pair in play and focus on a cluster of daily lows just below the 154.00 handle.
  • New Zealand unemployment headlines the APAC docket on Wednesday, before the focus turns to US ADP employment and ISM Services PMI.