USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Forex today: the greenback is climbing down
Something you should definitely know. George Soros warns about another financial crisis. According to the legendary billionaire, rising anti-European Union sentiment, the disruption to the Iran deal, a soaring dollar and investors taking money out of emerging markets are adding up to bad news for the global economy.
- The US dollar index couldn’t break the resistance at $95, so it rebounded. The index is below $94.50. The support lies at $94.30. Today traders will pay attention to nonfarm employment change (15:15 MT time) and prelim GDP (15:30 MT time). The forecast isn’t encouraging, however, if the actual data are greater, the greenback will be able to rebound.
The weakening dollar let other currencies to rebound.
- Although European economic data were mixed, the euro is rising. EUR/USD managed to rebound from the support at 1.1520. Moreover, the pair crossed the resistance at 1.1580. If it is able to close above 1.1580, there are odds of the future rise to 1.1650. Otherwise, the pair will remain within 1.1520-1.1580.
- The US dollar can’t rise versus the Japanese yen as trade and political tensions are still actual. According to an assessment of the US, North Korea does not intend to give up its nuclear weapons any time soon. However, the summit on June 12 is still on the agenda. Trade tensions between the US and China are back. Despite, an agreement on putting tariffs on hold, the US president announced his pushing ahead on tariffs and punishing China for playing unfair with intellectual property.
Yesterday the pair couldn’t break the support at 108.20 (50-day and 100-day MA), so it rebounded. However, up to now, the pair is coming back to this level again. The pair tested the support at 108.50 (38.2 Fibo level). If it is able to close below it, 108.20 will be an aim again. Otherwise, the rise to 109.80 can be anticipated.
- Although oil continues to plunge, the Canadian dollar is slightly appreciating against the US dollar. The USD/CAD pair rebounded from 1.3050 again. Up to now, the pair is trading near 1.30. Important economic data will be released later this day. If the US dollar manages to recover, a rise to the resistance may be anticipated again. Moreover, the Bank of Canada will release the interest rate and an economic outlook today (17:00 MT time). If the bank sounds hawkish, the Canadian dollar will be able to continue appreciating. Otherwise, the pair will rise. The resistance lies at 1.3050. The support is at 1.2930.
- The yuan is continuing to depreciate against the US dollar. The Chinese currency fell to lows of January 2018. According to analysts, the fall is caused by the strong greenback. However, an investment bank China International Capital Corporation said the currency is not facing significant depreciation pressure. Moreover, according to the bank, domestic exporters are willing to sell their dollars as they suffered exchange losses last year from a weak dollar, which will provide more support for the yuan. Tomorrow, traders will take into consideration manufacturing PMI and non-manufacturing PMI (04:00 MT time). Data are anticipated to remain at the same level. However, if they are greater, the yuan will have chances to recover.
- Other currencies managed to rise against the US dollar as well.
That is all for today. Follow markets news with us!
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