Forex today: dollar mixed despite higher yields
|Forex today was mixed for the dollar while the DXY traded between 98.695 - 99.215 and currently -0.27% on the day so far.
Despite US 10 years recovering above the 2.30% psychological mark, moving between a range of 2.2659% - 2.3412% and up 2.92% on the day, the dollar was unable to fend off the euro, sterling, cad bulls and was only modestly higher than the worst performer of late being the kiwi.
The euro is up 0.63% while trading in a range between 1.0851 - 1.0950, sterling was up 0.29% and trading between 1.2775 - 1.2846 on the day. The Canadia dollar is down 0.48% vs the dollar but made advances from the highs of 1.3627 down to 1.3493 currently. The antipodeans were holding their own vs the greenback but to a lesser extent and in the consolidation of the recent supply.
The fundamentals behind these moves were around the ECB being expected to remove some of the downside risks associated with the Fench elections and a potentially less dovish outcome boosted the euro. Then, we look to Trump. Trump is in focus this week as he approaches the end of his first 100 days and thus keen to being his promised policies to fruition. However, the tariffs imposed on Canadian lumber and question marks over other global trade deals is harming the commodity currencies such as the CAD.
The day ahead
For the day ahead, we look to Aussie CPI as the next key event. Most market participants expect a pickup in underlying inflation from 1.55% to 1.85%/yr. "We are a pip higher but shouldn’t be market moving since the February RBA projections assumed 2%/yr by mid-year," explained analysts at TD Securities.
Key US events:
- NZD/USD now below critical support levels, investors concerned about Trump protectionist policies?
- Canada's Natural Resources Min: We will continue to press American counterparts to rescind this unwarranted trade action
- Trump's tax plans to be made public Wednesday - UOB
- EUR/JPY: bulls eyeing the Dec 2016 highs on the wide of 124.08
- U.S. Home prices continue to hit new highs - Wells Fargo
- EUR/USD jumps above 1.09 as DXY remains under pressure
- EUR/USD consolidates earnings, still above 1.09
- USD/JPY: making further tracks towards 55-day ma at 112.00 key target
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