Well, what’s new in the Forex industry? Ok, let’s start with what’s not. The Greenback continues to be under pressure in today’s European session – not a great start for the Dollar Bulls. To add to that, the ICE Dollar Index plunged to 3-year lows on Friday, and the same narrative continued through-out today’s sessions with over-sold Dollar conditions. There was nothing to balance this out as there was no significant news release from the US, so most of the majors just extended their gains against the USD in a sort of trend movement more than anything else.
The EUR/USD pair was trading at a high of 1.2297 before the Bears emerged and dragged the pair back down to 1.2257. Meanwhile, the Cable made an attempt to break through the 1.3800 level. It managed a jump from 1.3780 to 1.3808, and then to 1.3820 but selling steam brought it back down and the pair is now trading at around 1.3771.
However, the CAD hasn’t managed to establish gains against the USD as the rest of its peers because NAFTA talks are still casting a shadow on any CAD related-movement. The Bank of Canada meeting is due this Wednesday, and the markets are expecting a rise in rates by 25 bps.
The Greenback managed some small gains late in today’s session, which has helped stem the bleeding a little – however, today’s trading theme is clear – red for the Dollar. The Dollar Index followed the Greenback’s downward spiral and plunged to a low of 90.279 just earlier, but has now rebounded to 90.527. Intraday though, it is still down by 0.49%.
In the commodities world, Gold is continuing its habitual uptrend on the back of the Dollar weakness, while oil has retraced some of last week’s gains – but remains on the high side.
This article is for educational and informative purposes only and should not be considered as investment or trading advice.