|Day's Range||91.070 - 91.320|
|52 Week Range||91.070 - 98.665|
The EUR/USD mounted a comeback throughout the session as buyers came in to defend the annual low reached in January. The inability to break the Euro through this low may have fueled Tuesday’s short-covering rally.
U.S Treasury yields could see the markets take a turn, though geo-politics will likely take the limelight through the day, with economic data on the lighter side.
Based on the early trade and the current price at 90.680, the direction of the June U.S. Dollar Index futures contract today will be determined by trader reaction to a pair of Gann angles at 90.80 and 90.91.
Fear of accelerating inflation, rising commodity prices and worries about the growing supply of government debt helped drive the 10-year yield to 2.998 on Monday.
It’s been risk on this morning, with the markets accepting rising Treasury yields, as economic data at the start of the week suggest that a soft patch in the 1st quarter may have come to an end.
Rising Treasury yields inspired the U.S. dollar to strengthen in the second half of the week, while a steepening yield curve brought relief to those fearful about a downturn of the U.S. economy.
Based on the early price action, the direction of the index the rest of the week will be determined by whether buyers can hold the index above the previous top of the range at 90.490.
Helping to boost yields was a comment from San Francisco Fed President John Williams who said last Tuesday that he expected U.S. inflation to rise to the U.S. central bank’s 2 percent goal this year and stay at or above that goal for “another couple of years.”
High U.S. Treasury yields contributed to the rise in the dollar all week. U.S 2-Year Treasury yields reached 2.453 percent on Friday, the highest level since September 2008 as the two-year’s spread versus two-year German Bunds grew to 302 basis points, the widest in more than three decades.
Inflation numbers out of Japan eased in March, giving the BoJ little reason to make a near-term move, with U.S Treasury yields hitting the Asian markets. Retail Sales and Inflation numbers out of Canada the main event for the day ahead.
The current price action indicates that the relatively optimistic view about the U.S. economy should be enough to support the Fed’s notion to raise interest rates at least two more time in 2018. Some traders are even pricing in as many as three rate hikes.
It was risk on through the Asian session, with equity markets rallying, a jump in commodity prices supporting the Aussie Dollar that managed to shake off weak stats early on, with retail sales the next hurdle for the Pound this morning.
FOMC Member Raphael Bostic said the U.S. economy is in a good position to grow and he expects to see U.S. inflation hitting the Fed’s target within a month or two.
BoC to set the tone for the Loonie later today, with inflation figures out of the Eurozone and the UK to also give some guidance on where the respective central banks are heading in the coming months.
Based on the early price action, the direction of the U.S. Dollar Index the rest of the session will be determined by trader reaction to the main 50% level at 89.160.
A dovish RBA and weak economic data out of China weighed through the Asian session, with the day ahead a busy one on the economic calendar, bringing the Pound, the EUR and the Dollar into focus.
It’s all eyes on the Dollar today with economic data out of the U.S and noise from the Oval Office continuing to keep the markets busy on what is a quiet day on the data front for Asia and Europe.
The impact of the attack on Syria is likely to boost long speculation in gold and crude oil. However, stocks may be unaffected like they were last week when Trump first mentioned the possibility of missile attacks.
The Greenback reached its low of the week on Wednesday in response to upbeat comments from President Xi Jinping of China which seemed to ease tensions over a potential trade war with the U.S. The market was further supported by hawkish minutes from the U.S. Federal Reserve’s March meeting.
Bank shares initially traded higher before falling. However, analysts said the strong results were already priced in.
President Donald Trump late Friday said he has approved military strikes in Syria in response to a suspected chemical-weapons attack by Syrian President Bashar al-Assad's regime last weekend. "A short ...
The Treasury Department says that it had declined to label China manipulator but expressed new concern about India in its semiannual report on international exchange rates.
China sees its first trade deficit with the U.S in over a year, as the markets consider the prospects of conflict with Syria, a more aggressive FED, a lingering threat of a trade war and softer economic stats out of key economies.
Even a hawkish set of FOMC meeting minutes and a jump in baseline inflation failed to spur the Dollar into action, with geopolitical tension on the rise as Trump looks set to launch missiles on Syria.
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