The USD continues to float because it consolidates final week’s advance, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
USD continues to consolidate
“Good points for the JPY and EUR on the session are pressuring the DXY considerably however the drop within the greenback index nonetheless seems extra like a pause forward of renewed beneficial properties quite than a reversal. Excessive beta FX is usually underperforming amid some lumpy strikes in Asian shares and a pointy drop in crude oil (down 2%). The AUD is the primary underperformer on the session as markets ponder the outlook for the Chinese language economic system.”
“Chinese language markets returned from holidays with a bang however have been unable to maintain robust opening beneficial properties. Buyers are disillusioned with the size and scope of stimulus measures provided by the authorities. The mainland CSI 300 inventory index gave up almost half of its opening beneficial properties on the day whereas the Hold Seng fell greater than 9%. European shares are within the purple whereas US fairness futures are holding small beneficial properties.”
“It’s one other fairly gentle session for information—simply the Commerce Steadiness replace from the US this morning. There is a little more Fedspeak right this moment (Bostic, Collins—a non-voter—and Jefferson) and a 3Y public sale, with outcomes at 1pm. This night, the RBNZ is anticipated to chop its key money charge 50bps to 4.75%.”
