Free Trial

USD Index Through Last Week's Lows

  • The greenback is generally softer across G10 early Monday, with the USD Index through last week's lows and eyeing 109.535, the near-term support posted at the Oct 27 low. For now, the USD pullback looks corrective in nature, with prices still tied to the medium-term uptrend. The 50-dma continues to trend higher, crossing today at 111.213.
  • GBP trades more favourably, with GBP/USD now erasing the entirety of the post-BoE decision move lower. For now, a stronger reversal higher and a break of 1.1645, Oct 27 high, is required to reinstate the recent bull cycle.
  • Antipodean and commodity-tied currencies are moderately lower, with NZD and AUD lower as China doubled-down on their Zero COVID Strategy. There had been some speculation that rules could be eased over the weekend - rumours that had driven local asset prices higher. These hopes are fading early Monday, putting CNH, AUD and NZD lower at the NY crossover.
  • Datapoints are few and far between Monday, keeping focus instead on the central bank speaker slate. Fed's Collins, Mester and Barkin are all due to speak. This week, however, focus rests on the US inflation release due Thursday. Consensus looks for 0,6% M/M and 7.9% Y/Y.

To read the full story



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.