‘The weak U.S. GDP is doing the dollar no favours. But it also takes courage to keep buying the dollar considering what Trump has said about the kind of a currency policy he could pursue.’ – Mizuho Bank (based on Reuters)
In spite of a weaker US GDP reading on Friday, the Greenback still managed to outperform the Japanese Yen, successfully reclaiming the 115.00 level. The Buck is expected to retain its strength and continue outperforming the Yen, but there is still an issue that could prevent the pair from edging higher: the USD/JPY opened with a bearish gap under 115.00, while also having the 20 and the 55-day SMAs providing immediate resistance just above the opening price. The US Dollar’s rally is unlikely to last, as we are about to have a sell signal, implying the pair is to edge lower by week’s end. At the moment, technical studies are unable to confirm either scenario.
Today 52% of all open positions are short (previously 50%). Meanwhile, the portion of buy orders inched down from 69 to 59%.