May 31, 2024 12:53 GMT
USD Retains Moderate Downward Bias Following US Data, Month-End In View
FOREX
- The FX price action remains fairly subdued following the US data, however, lower personal spending figures keep the greenback on the backfoot and see some European short-term trends extend.
- Notably, EURUSD pops above the Wednesday highs and enters the higher end of the week’s range as it approaches the 1.09 handle. Above here, 1.0895 marks the short-term bull trigger, which could open 1.0933 next, a Fibonacci retracement.
- Firmer risk sentiment / higher equities keep the Antipodeans and Scandies as the most buoyant in G10. USDJPY making a tentative move back below 157.00, although well shy of the overnight lows at 156.58.
- As a reminder, month end models point to USD sell signals ahead of the WMR fixing window around 1600BST, which may be adding a moderate greenback headwind in recent trade.
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