USD consolidates in quiet trade – Scotiabank
Markets are relatively quiet overall and perhaps with an eye on Friday’s payrolls data and the US Presidential election just a week away now, that’s not surprising. The USD is mixed to slightly softer overall on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
USD consolidates, trades mixed versus majors
“This morning’s US data round includes Wholesale Inventories at 8.30ET, housing data at 9ET and September JOLTS and October Consumer Confidence data at 10ET. There is a 7Y Treasury auction and results at 13ET will be watched after yesterday saw weak demand for 2Y and 5Y securities.”
“Recall that the rising US term yield premium has suggested that investors are demanding higher returns for holding US Treasury debt ahead of the election. Australia releases Q3 CPI at 20.30ET. Inflation is expected to slow sharply to 2.9% in the year— within the RBA’s 2-3% target range—but markets are reluctant to price in any real risk of rates easing in Australia before Q2 next year.”
“A second day of (so far) narrow losses for the DXY add to the sense that the broader dollar move up is stalling in the mid-104s but losses have not yet made any sort of challenge on short-term support at 103.93, below which the dollar risks extending a little further lower.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
