• The greenback continues to trade with a softer tone, extending on weakness seen across early European hours. The Bloomberg DXY currently sits at the lowest level for the week, taking note of the lower US yields with some potential profit taking in play ahead of the Fed.
  • Higher equities continue to bolster the likes of AUD and NZD as the best performers on the session, however, EURUSD (+0.42%) is playing some catch up in recent trade, breaking above yesterday’s high of 1.0718. Overall, a bear trend remains for the pair and initial firm resistance is seen at 1.0766, the 20-day EMA.
  • GBPUSD has fully reversed the CPI-inspired decline, with fresh shorts potentially suffering from the close proximity to tomorrow’s BOE rate decision, where divergence has now emerged among analysts as to whether the MPC will hike or pause. Short-term cable gains are considered technically corrective at this juncture.
  • The lower US yields and the failed momentum above 148.00 overnight are also weighing on USDJPY, now around 55 pips off the overnight highs. The pair is yet to breach the week’s lows at 147.51.

USD: Greenback Softening In Recent Trade, BBG USD Index Prints Weekly Lows

Last updated at:Sep-20 14:21By: Jack Lewis
  • The greenback continues to trade with a softer tone, extending on weakness seen across early European hours. The Bloomberg DXY currently sits at the lowest level for the week, taking note of the lower US yields with some potential profit taking in play ahead of the Fed.
  • Higher equities continue to bolster the likes of AUD and NZD as the best performers on the session, however, EURUSD (+0.42%) is playing some catch up in recent trade, breaking above yesterday’s high of 1.0718. Overall, a bear trend remains for the pair and initial firm resistance is seen at 1.0766, the 20-day EMA.
  • GBPUSD has fully reversed the CPI-inspired decline, with fresh shorts potentially suffering from the close proximity to tomorrow’s BOE rate decision, where divergence has now emerged among analysts as to whether the MPC will hike or pause. Short-term cable gains are considered technically corrective at this juncture.
  • The lower US yields and the failed momentum above 148.00 overnight are also weighing on USDJPY, now around 55 pips off the overnight highs. The pair is yet to breach the week’s lows at 147.51.

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