USD softer against most majors – Scotiabank
|The USD is trading lower against the majority of its major currency peers so far today but the DXY is registering a small gain on the session, reflecting the underperforming EUR, which has slipped 0.2% to give the index a modest boost, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
DXY gains on EUR weakness
“Weaker stocks and perhaps month-end flows helped the USD bid tone yesterday but the overall USD tone remains soft and minor gains so far this week in the DXY are barely challenging the downtrend that has developed over the past few weeks. Stocks look in better shape today, however, and there is not much talk or evidence of month-end USD demand. The USD is likely to retain a soft undertone while markets continue to price in the risk of aggressive Fed rate cuts over the balance of the year.”
“Next Friday’s Non-Farm Payrolls data will go a long way in shaping rate cut expectations. The second update of US Q2 GDP is released at 8.30ET (expected unchanged at 2.8%). Weekly claims data and July Wholesale Inventories are out at the same time. July Pending Home Sales are out at 10ET while Bostic (FOMC voter) speaks on the Fed’s economic outlook at 15.30ET. Bostic commented yesterday that he wanted to see more data confirming the need to cut rates in September.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.