Asia Session Recap
The beginning of the trade week in Asia brings some talk of the US Dollar being oversold, thus the dollar strength that we are seeing at play tonight. As well, we see futures traders betting there is an 82% chance that the Fed is done with its cutting cycle, while looking across the big pond it would seem that the ECB is getting closer to beginning an easing cycle due to weakening economic growth. The possible end of rate lowering in the US and the possibility of future cuts in the Euro-Zone make the dollar a more appealing destination. In the markets, the EUR/USD opened up and took off to session highs at 1.5484 and then took a header south to bottom out a tad above the 1.5400 figure, ending the Asian night hovering just above that area. The British Pound followed the Euro leader, opening up and hitting 1.9522 highs and then falling off to 1.9460 lows. By sessions end the GBP/USD rebounded to end out near 1.9475.
As happened on Friday, USD/CAD and USD/CHF both took off right out of the gate. USD/CAD starting out at 1.0050 levels and added almost 40 pips by session end, in USD/CHF, we saw the same strength, ending at about 1.0476, 70 pips higher than the low.
It seems most people are seeing the dollar as a good buying opportunity at these levels.
USD/JPY stumbled out of the gate, hitting a 10255 low and then strapped in for a ride straight up to 1.0348, reversing a losing streak vs. the yen that the dollar was victim of most of last week. EUR/JPY rallied late and touched the 159.47 level before settling in to trade sideways near 159.35.
Look for this week's US economic data to bring some mixed signals and we'll have to wait and see how the moves are translated and if the Dollar can keep its new found foothold.
Upcoming Economic Data Releases (London Session):
- 0430 EDT UK - PPI Input s.a. (MoM), previous: 1.80% consensus: 1.80%
- 0430 EDT UK - PPI Input NSA (YoY), previous: 20.60% consensus: 21.40%
- 0430 EDT UK - PPI Output n.s.a (MoM), previous: .90% consensus: .60%
- 0430 EDT UK - PPI Output n.s.a (YoY), previous: 6.20% consensus: 6.40%
- 0430 EDT UK - PPI Output Core SA (MoM), previous: .30% consensus: .30%
- 0430 EDT UK - PPI Output Core NSA (YoY), previous: 3.10% consensus: 3.20%
- 0430 EDT UK - Visible Trade Balance GBP/Mn, previous: -7487GBP consensus: -7500GBP
- 0430 EDT UK - Trade Balance Non EU GBP/Mo, previous: -4023GBP consensus: -4000GBP
- 0430 EDT UK - Total Trade Balance GBP/Min, previous: -4439GBP consensus: -4400GBP
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