It’s a bit of a choppy week for the dollar in general but on the balance of things, it is keeping somewhat steadier. USD/JPY came close to testing the 140.00 mark yesterday before falling off, now down to 139.30. Meanwhile, EUR/USD is not doing much this week as price holds just above the 1.1200 mark.
The pound is the notable loser though, after the softer UK inflation report here yesterday. Then, we have the aussie which moved lower since Friday last week only to rise strongly today as highlighted here.
To summarise, the dollar rout from last week is stalling and traders need to reassess the technical conditions again as the greenback finds some stability on the week.
In other markets, equities continue to hold firmer this week after news from Apple – which saw shares hit a record high – on developing its own internal AI chatbot for its employees. Tech shares are down today though as we see a retreat following Tesla and Netflix’s earnings.
Looking ahead to Europe, there will be some light releases but nothing again to really impact markets whatsoever. The focus will continue to reside mostly on dollar sentiment and the risk mood before we get to the weekend. And then next week, we can start to get a little more cagey awaiting key central bank decisions.
0600 GMT – Germany June PPI figures
0600 GMT – Switzerland June trade balance data
0645 GMT – France July business confidence
0800 GMT – Eurozone May current account balance
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
