The EURUSD pair initially fell on Monday, but found the 24-hour exponential moving average to be supportive enough to turn the market around, and send it back above the 1.12 level.
The Australian dollar had an explosive session on Monday, initially gapping lower, filling the gap, and then continue the down move.
FBN’s Jeff Flock on the management shakeup at Ford (F, quote).
The AUDUSD pair had a very strong session on Friday, reaching towards the highs that we had touched on Thursday. That’s a very bullish sign, and I think that the market is now trying to reach towards the 0.75 level above.
Last week was a bad one for the US dollar. Market participants questioned whether it was premature to assume a June rate rise was forthcoming and that the path of future interest rate rises would be the same as those as set out by the FOMC’s projections.
Economic data out of the UK released in the last couple of days has been pound-positive, yet the GBPUSD is still holding below the 1.30 handle. But for how long? Given that the positively-correlating EURUSD pair has already broken well above its own corresponding psychological hurdle at 1.10 after a sharp rally, the cable could be playing catch up.
The euro continues to defy gravity. The single currency is up sharply against all of its major rivals, including the pound which took a beating despite stronger UK inflation figures released this morning.
China’s central bank renewed its cash injection via open market operations to ease liquidity on Tuesday after suspending the move for two trading days.
The Australian dollar has rallied during the session on Monday, breaking above the 0.74 level. We found a bit of resistance at the 0.7450 level, and then dropped.
The price of oil has surged higher at the start of the new trading week. This has helped to lift energy stocks and also underpin commodity currencies such as the Canadian dollar (FXC, quote).