Forex today: dollar mixed but under water to three year low
|Forex today offered a mixed dollar in the NY session with being caught up between the positives of the Senate managing to get a sign off from Trump for a debt extension until Feb 8th and the fact that US Treasuries rallied as a result. Subsequently, rates fell and enabled a bid in the dollar's counterparts.
EUR/USD was already boosted by the ZEW big beat ahead of this week's ECB meeting where there had already been sentiment for a hawkish shift to the rhetoric in the presser. The dollar was pressured within a day's range of between 90.0630-90.5880 (three year low) and the US 10 year yields ranged between 2.61%-2.66% closing -1.32 % at 2.61%. Sterling got caught up in the dollar's spiral to weekly lows as well and cable managed to find territory again on the 1.40 handle to 1.4027 the high. Thi was after the Asian shift dumped pounds from 1.4005 for Europeans sell into the flows right down to 1.3916 while UK regulator's put the brakes on Murdoch's USD 15.7bln Sky deal. However, once again, the London fix pulled in bulls leading into the event and cable made fresh post-Brexit highs again. EUR/GBP closed its doors for the North American session in the 0.8780's in a positive tone 20 pips higher than the Asia low between a range of 0.8768-0.8795.
USD/JPY was battered yet again and bears were in control right the way down until 110.25, despite the BoJ's affirmations of easy policy overnight, (leaving CPI forecasts and policy unchanged with QQE/YCC the same). 110.00 option barriers also in play if 110.15 supports give way. The Tankan fell to 111.04, limiting topside and bears are licking their lips for a pop at the 110 handle. As for the antipodeans, AUD/USD, ending near 0.8000, was bullish from the starting blocks while copper stabilized and help push the Aussie along towards the 0.80 handle before a fade back to 0.7980. The kiwi remains better bid and made a high of 0.7364 from 0.7313. Gold was also better bid, taking advantage of the dollar's decline yet again and cracking the topside of the recent consolidation of 19th Jan's 1333 highs.
Key notes from US session:
- WTI reverses gains on unexpected increase in US crude stocks
- Wall Street ends mixed session higher
- Crypto Today: Bitcoin recovers above $11K as sentiment improves
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