The Aussie has taken firmer grip of the 0.7800 handle on the back of firmer than expected Q4 GDP and the Loonie has extended gains to test 1.2600 following decent Canadian Q4 growth and gleaning support from firm crude prices ahead of building permits.
The Buck is trying to stop the rot and draw lines in the sand right across the board following yesterday’s fall from grace, with some assistance from a resumption in UST bear-steepening that has pulled the recovery rug from bonds in general. However, trade is volatile and having flattered to deceive above the 50 DMA on Tuesday, the DXY only just evaded a clear downside breach of the 21 marker (90.627) within a 90.871-626 band and the Dollar remains mixed vs major counterparts and weaker for choice against EMs ahead of a busy agenda including weekly MBA mortgage applications, ADP, the final Markit services and composite PMIs, non-manufacturing ISM and more Fed speak before the latest Beige Book.
The Buck is trying to stop the rot and draw lines in the sand right across the board following yesterday’s fall from grace, with some assistance from a resumption in UST bear-steepening that has pulled the recovery rug from bonds in general. However, trade is volatile and having flattered to deceive above the 50 DMA on Tuesday, the DXY only just evaded a clear downside breach of the 21 marker (90.627) within a 90.871-626 band and the Dollar remains mixed vs major counterparts and weaker for choice against EMs ahead of a busy agenda including weekly MBA mortgage applications, ADP, the final Markit services and composite PMIs, non-manufacturing ISM and more Fed speak before the latest Beige Book.