FX markets are a bit messy as summer market liquidity is not helping matters but currency markets stammer along.
EURO
A very choppy overnight session void of any particular catalyst but the eye opening interest in the EUR crosses has percolated through to EURO strength once again. With the EURUSD downside appearing very limited at this stage traders are left mulling the decision to either flatten up and hope for a dip buying opportunity or throw all caution to the wind and jump in at the top of the current cycle hoping for a test of 1.2000.
Overnight volumes were dominated by investors clamouring for high side EUR exposure, but the greenback in general remains under the microscope as the market is itching for some clarity on both the US economic landscape and the muddled US political panorama.
Friday’s NFP is shaping up to be a majorly significant event.With summer setting in and holiday liquidity upon us, Friday’s jobs report could be the last hurrah before what is shaping up to be a very interesting Septemeber for Fed watchers. I suspect the street will be locked and loaded
Australian Dollar
The Aussie continues to give way as President Trump prepares to dig his heels in and intensify US scrutiny into Beijing’s trade practices. Since Australia is a major player in the APAC supply chain, the idea of an escalating trade war between the world’s two major super powers is not sitting well with AUD investors this morning.
