Market Brief: the Dollar heads for its worst year in a decade
11 Sep 2018
We are anticipating another quiet day in the market today as liquidity and data are both pretty thin.
Today's data releases |
Key levels | |||
---|---|---|---|---|
09:00 | EZ ECB publishes economic bulletin | Support | Resistance | |
09:30 | UK finance loans for housing | GBP/USD | 1.3220 | 1.3520 |
15:00 | US pending home sales | GBP/EUR | 1.1134 | 1.1566 |
Market overview
We are anticipating another quiet day in the market today as liquidity and data are both pretty thin. The US Dollar fell to its lowest level in three weeks overnight as EURUSD moved to 1.1945 and cable moved to 1.3450. A slide in treasury yields weighs on the currency that’s heading for its worst year in more than a decade. DXY, the Bloomberg dollar index, has declined 8.2% this year alone. Furthermore, the Conference Board measure of consumer confidence in December undershot consensus expectations at 122.1 (consensus 128.0, November a downward revised 128.6). This marks a 3-month low. At the same time, pending home sales showed a picture of relative resilience, posting a monthly gain of 0.2% against expectations of a 0.5% decline.
Contrastingly the NZD strengthened for a seventh day running, gaining along with other commodity-linked currencies including AUD - copper in London surged to the highest in almost four years after China ordered its top producer to halt output to combat winter pollution. Note that NZD has climbed more than 4% since reaching 17-month low of 0.6781 on Nov. 17 as traders speculate that incoming RBNZ Governor Adrian Orr will be able to steer the mandate change at the monetary authority.
Contrastingly the NZD strengthened for a seventh day running, gaining along with other commodity-linked currencies including AUD - copper in London surged to the highest in almost four years after China ordered its top producer to halt output to combat winter pollution. Note that NZD has climbed more than 4% since reaching 17-month low of 0.6781 on Nov. 17 as traders speculate that incoming RBNZ Governor Adrian Orr will be able to steer the mandate change at the monetary authority.