So the dollar dropped across the board today on a combination of risk appetite helping commodity stocks, gold and crude and a hangover from the dissapointing payrolls data. USDX still holding support however at around 76.25 which coincides with 14560 ish on eurusd. Time will tell, if we break this support and if this represents a shift from the recent trend of dollar buying, and back to the dollar getting sold off with risk. We do, however, seem to have seen a shift back to fundamentals ruling dollar direction, i.e getting sold on bad U.S news and bought on good. So it’s going to be interesting if and when we get some good U.S data later in the week.
German exports beat expectation, a rise for the 3rd consecutive month, again indicating an increase in global economic activity and supportive of the morning equities rally and eurousd strength.
Yen weakened against the euro and the pound with the early morning bout of risk appetite, before coming off as equities sold off early in NY. I have picked up euryen and gbpyen longs on the dip and will add if we go any lower, targetting 149gj and 134ej for now.
Also reported today, was some kind of G7 pact to ‘ensure forex stability’. Details of what was agreed are sketchy to non-existant though. so just an FYI.
Not much else to add for now. US and UK trade balance numbers up on deck tomorrow with earnings season also getting into full swing.
C.
