Reversing

14 October, 2016

Nothing lasts forever and that’s especially so in FX markets. The dollar was a little more circumspect yesterday, reversing from the 98.00 level on the dollar index. A similar pattern has also been seen in the oil price, with Brent reversing from the high just below the USD 54pb level seen earlier this week to stand just above USD 50. Sterling has also been in reversal mode, forming a wedge pattern on the daily cable chart just above the 1.20 level. Sterling remains vulnerable to further corrective activity, given the extent of short positions in the wider market, but that would probably mean a more sustained dollar downmove as well, which at this point in time looks unlikely.

There are a few central bank speakers today, both from the Fed and BoE. Both have the potential to impact markets. On the former, Rosengren speaks at 12:30 GMT. He was one of the three dissenters in favour of a tightening at September meeting, so there is no reason to expect him departing from this path. BoE governor Carney and others are due to speak later today. Overall, the data focus is with the US retail sales and PPI data at 12:30 GMT. The dollar could continue its more corrective activity into the end of the week, data allowing.


Source link  
USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...

USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...


BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...


Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

  


Share: