Dollar perks up, but registers weekly loss;
What are currencies doing?
Paring earlier losses, the ICE U.S. Dollar Index DXY, +0.52% a measure of the unit’s strength against six currencies, rose 0.6% to 89.104 on Friday. However, the popular dollar gauge is on track to drop 1.4% on the week, its worst and first negative performance since late January, according to FactSet data. The WSJ U.S. Dollar Index BUXX, +0.42% which tracks the buck against 16 main currencies, was up 0.5% at 83.07. On the week, the index has fallen 1.3%. The greenback reversed its modest climb against the Japanese yen USDJPY, +0.15%USDJPY, +0.15% as it pared some of its overall strength. One dollar last bought ¥106.27, compared with ¥106.12 late Thursday in New York. After hitting a 15-month low of ¥105.55 earlier, it leaves the pair hovering at the lowest level since November of 2016. The yen, considered a haven for investors in times of economic and financial turmoil, has been on the rise since last week’s global stock-market pullback. On the week, the yen has strengthened 2.3% against the dollar, making it the best weekly performance since February 2017, according to FactSet data. Read More @ https://www.marketwatch.com/story/dollar-heads-for-biggest-weekly-loss-in-2-years-2018-02-16?siteid=rss&rss=1
G10 FX Week Ahead: Can the Fed save the dollar?
We’re clearly witnessing a weak dollar environment, with early signs that investors are demanding concessions (both in FX and yields) to hold US bonds. After a market holiday on Monday, the US focus will shift back to the Fed story. The minutes of the Jan FOMC meeting are released on Wed, with several Fed speakers then to be heard before the release of the semi-annual monetary policy report on Friday. This is all preparation for the main event on Feb 28th, when new chair Powell testifies to Congress. Read More @ https://think.ing.com/articles/g10-fx-week-ahead-can-the-fed-save-the-dollar/
Uncertainty reigns in final polls ahead of Italy election – a cancer for EUR PAIRS.
ROME (Reuters) – Silvio Berlusconi’s center-right bloc has a clear lead ahead of Italy’s parliamentary election on March 4 but is unlikely to win a working majority, a batch of final opinion polls showed on Friday, pointing to possible political deadlock. Read More @ https://www.reuters.com/article/us-italy-election/uncertainty-reigns-in-final-polls-ahead-of-italy-election-idUSKCN1G010J
WHAT IS THE EURO & USD INDEX TECHNICAL SAYING?
EURO is hungry for a breakout with the Ascending Triangle, whereas the USD support has already broken – Friday it had a good pullback to $89 and we believe it won’t last long.
NEWS THAT MIGHT EFFECT YOUR TECHNICAL TRADES ON MONDAY.
- What a broking Monday is going to be with US & China goes for holiday.
- G10 and Euro Group meeting will give some sudden volatility on Monday or else it will be a very quiet Monday
- 5,00pm – EURO will release the Current Account and we are expecting it to be good. We Buy EUR on all pullback or new low from the previous low.
- 7.00pm – German Buba report will create some volatility; be cautious.
As the market consolidates before FOMC on Thursday early morning we should see market ranging – please do be cautious with your money management.
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