|Day's range||0.974 - 0.975|
|52-week range||0.9542 - 1.0229|
Based on the early price action, the direction of the September U.S. Dollar Index on Tuesday is likely to be determined by trader reaction to Monday’s close at 95.487. If the Euro posts a reversal top then look for the index to post a reversal bottom.
The dollar on Tuesday remained shackled by the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold were supported by simmering tensions between Washington and Tehran. Selling in the dollar accelerated after the U.S. Federal Reserve signalled it would cut interest rates before year-end on mounting worries about the fallout from tariff wars President Donald Trump is waging against China and many other trading partners. Investors looked to whether Trump and Chinese President Xi Jinping would at least call a truce in their trade war when they are expected to meet at the G20 summit in Osaka later this week.
The Swiss attorney general's office (OAG) on Monday announced it was returning 130 million Swiss francs ($133 million) to Uzbekistan which it seized during an investigation involving a relative of the daughter of the country's former president Islam Karimov. The OAG did not name the relative who was convicted on Monday in the Swiss Federal Criminal Court of charges related to opening a web of bank accounts in a bid to hide the identity of the money's true owner, Gulnara Karimova, the eldest daughter of the now-deceased president.
After a sharp move up yesterday, EUR/USD is taking a breather around the 1.1300 level. The pair seems to be eyeing the 200 DMA, however, it remains to be seen if the pair tests it today.
A few moments ago, Iran attacked a US military surveillance drone flying over the Strait of Hormuz increasing war fears. Jeremy Hunt would compete with Boris Johnson for the next UK PM position.
It looks like the calm in the currencies is drawing to a close and volatility is about to pick up. So far, so good. We’re at a crossroads these days: after a recent string of declines, the USD appears to be catching a bid. This is not without repercussions and a move either way will be profoundly felt across the markets. But which way that move will be? Read on to find out – and also get positioned accordingly.
The Swiss National Bank (SNB) could further relax its ultra-loose monetary policy, it said on Thursday, blaming rising trade tensions between the United States and China for a spike in the safe-haven Swiss franc. The central bank kept on hold its policy of negative interest rates and readiness to sell francs to tackle the situation on what Chairman Thomas Jordan called fragile foreign exchange markets. "When the trade dispute between the U.S. and China escalated again in May, the Swiss franc and the Japanese yen appreciated," Jordan told a news conference.
It promises to be an interesting month, especially as we build to what is a ‘live’ FOMC meeting in July, with implied at 62% chance of a cut. If Trump doesn’t converge with the Mexicans and Chinese then the Fed start chopping and that has huge implications – gold bulls will be feeling a tad excited right here.
The U.S. dollar fell on Monday morning, hitting a 4-1/2 month low against the Japanese yen and a two-month low against the Swiss franc as President Donald Trump hardened his trade stance toward countries beyond China. Trade tensions have taken center stage in recent weeks as Trump has increased tariffs on Chinese imports, threatened to raise tariffs on Mexican imports and removed preferential trade treatment for India. The mounting tension has prompted investors to move out of riskier assets like U.S. stocks and into safe-havens like the yen and franc.
The Swiss franc rallied to its highest levels in nearly two years against the euro on Monday as U.S. President Donald Trump hardened his trade stance to countries beyond China, prompting investors to move into perceived safe-haven currencies. Trade tensions have grabbed center stage for investors in recent weeks after Trump increased tariffs on Chinese imports, threatened to raise tariffs on Mexican imports and removed preferential trade treatment for India. Rising strains on trade have prompted investors to dump risky assets such as equities and flock to low-yielding currencies such as the yen and the franc with the latter flirting close to levels where the Swiss National Bank has traditionally intervened to keep the currency weak.
The yen brushed a more than four-month high against the dollar on Monday and the Swiss franc rose as U.S. President Donald Trump's hard stance on trade broadened to countries beyond China, stoking investor demand for safe-haven assets. In a recent development, U.S. and Mexican officials were preparing for trade talks after Trump vowed to impose punitive tariffs on all Mexican goods in an intensifying dispute over migration. No one was really expecting it to the same extent they were with China," said Chris Weston, Melbourne-based head of research at foreign exchange brokerage Pepperstone.
The wave of risk aversion sent sovereign bond yields tumbling across the world. The mood darkened after the People's Daily newspaper, owned by China's ruling Communist Party, said Beijing was ready to use rare earths for leverage in its trade dispute with the United States. "Concerns about global trade are being felt across asset classes and the currency markets are feeling the pressure," said Nikolay Markov, a senior economist at Pictet Asset Management.
Based on the early price action, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the 50% level at 97.535.
Thursday brought us gains on two important European currencies: CHF and EUR. The first one was gaining traction from some time already but for the second one that is something new and should be rather considered as a short-term correction.
SIX, the Swiss national stock exchange group, is working on creating its own stablecoin pegged to the Swiss franc.
The Japanese yen and the Swiss franc firmed on Wednesday as risk appetite remained weak in the backdrop of festering trade tensions between the United States and China. While risky assets heaved a sigh of relief overnight after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies, the lack of a significant breakthrough has kept investors on edge. The Japanese yen and the Swiss franc remained firm against the dollar with both currencies set to gain nearly one percent so far this month against the greenback signaling investors were broadly dialing back on risky assets.
Based on the early price action and the current price at 97.900, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 97.950.
May is definitely an interesting month on the market. It is hard to generally say if this is a month of a USD, or safe heavens or for example Bitcoin.
June U.S. Dollar Index traders should keep an eye on the Euro since it is heavily weighted in the index. The Dollar Index could weaken if the EUR/USD takes out 1.1164 and strengthen if the EUR/USD breaks through 1.1152.
Investing.com - The Chinese offshore yuan lost its initial impetus and traded little changed against the U.S. dollar on Tuesday as China’s central bank supplied liquidity, dampening a rebound from 2019 lows.