Slow dancing dollar grinds lower Slow dancing dollar grinds lower Slow dancing dollar grinds lower

Slow dancing dollar grinds lower

Forex 4 minutes to read
MO
Michael O’Neill

FX Trader, Loonieviews.net

Summary:  The US dollar is grinding lower in slow dancing, low tempo moves. Traders are timidly optimistic and hoping for a risk-seeking rally to fuel G-10 currency gains against the US dollar.



This mood music follows somewhat positive comments on Sunday, by White House Economic Advisor Larry Kudlow about the progress in the US/China trade talks.

EURUSD inched higher since New York opened with the break above 1.1255 suggesting further gains to 1.1330. European Central Bank (ECB) President Mario Draghi was at his dovish best on March 7 when he pushed out the timing for the next rate hike and confirming another round of Targeted Long-term Refinancing Operations. He is very unlikely to be more dovish sounding this Wednesday, which may give scope for further EURUSD gains.

Today’s Canadian Housing Starts data helped to undermine USDCAD which was already under pressure from surging oil prices. WTI oil prices extended Friday’s in New York trading which provided a much need layer of support to the Canadian dollar. Housing Starts climbed to 192,500 in March, well above February’s weather-related 166,300 result. USDCAD support is at 1.3310 and resistance at 1.3465.

USDJPY is trading just below its overnight low on the back of US equity market weakness while GBPUSD shuffles between 1.3030-70. There are reports that some pro-Brexit MP’s want to call a no-confidence vote in Theresa May while she is in Europe asking for another article 50 extension.

Wall Street opened in the red. Boeing’s (BA: NYSE) decision to scale back production of its 737 MAX aircraft is weighing on its stock which is down 4.37% in early trading. General Electric (GE: NYSE) got bad news from a JP Morgan analyst who downgraded the stock to “underperform” citing a drop in cash flow potential.
Chart: EURUSD 30-minute. Source: Saxo Bank


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.