MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI BRIEF: Former BOC Dep Beaudry Sees 2.75%-3% Rate In 2025

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

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

USD Index Set To Continue Streak of Weekly Gains

FOREX
  • Despite an initial move lower on the above-expectation US unemployment rate and dip in average hourly earnings, the greenback came roaring back late Friday aided by the firmer headline payrolls figure and better ISM data. With this solid reversal, the USD index looks set to close the week around 104.20, confirming the index’s seventh consecutive weekly advance.
  • USD strength has been broad based amid the bear steepening bias across the US curve, with the majority of other G10 currencies showing associated weakness.
  • Focusing on the majors, USDJPY is registering gains of around 0.4% heading into the close, but this does not quite tell the story of another volatile post US-data session. Initial price action saw an already weak USDJPY trade as low as 144.45, briefly piercing initial support at 144.54, the Aug 23 low. However, the swift reversal caught powerful momentum back through the pre-data levels around 145.10 and the pair rallied consistently throughout the US session to reach an eventual peak of 146.29. Upside focus for markets will remain on key resistance and the bull trigger at 147.37, and any potential discomfort from MOF officials in Japan.
  • In similar vein for EURUSD, the pair shed around 100 pips from the 1.0882 post-data highs and looks set to end the week below the 1.08 handle, the lowest close since mid-June. All eyes are on support at 1.0780, the base of a bull channel drawn from the Mar 15 low and a pivot point. A clear channel breakout would strengthen bearish conditions and open 1.0733, Jun 12 low. Key medium-term support for the pair remains lower down at 1.0635.
  • Despite the North American Labor Day Holiday on Monday, it is worth noting that ECB President, Christine Lagarde, is due to speak at an event hosted by the European Economics and Financial Centre, in London. Both RBA and BOC rate decisions highlight next week’s docket.
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.