USDIndex, Daily
The USDIndex has stabilised after correcting yesterday in the wake of US bank troubles that pulled global stock markets lower. Wednesday’s post Powell 105.85 2023 high has now been replaced with a pre-NFP holding pattern at 104.70. The Yen underperformed after the BoJ kept rates on hold and outgoing governor Kuroda suggested its too early to exit ultra-accommodative policy settings. The decision wasn’t really a surprise, but there had been lingering speculation in markets that Kuroda could spring a final surprise before handing over to Ueda. USDJPY lifted to within a pip of 137.00, but the Dollar lost ground against the EUR and even more so versus Sterling and CHF. The latter benefited from waning risk appetite, while Sterling got a boost from a surprisingly strong bounce in GDP at the start of the year which added to speculation that the BoE will continue to hike rates. EURUSD is just under the 1.0600 mark, Cable just under 1.2000.
Elsewhere, Emerging Market currencies are also eyeing key levels as trends look set, USDTRY is pushing to 19.0000, USDZAR trades at 18.3340 having rejected an initial rally to the 19.0000 zone and USDMXN has bounced from a test of under 18.0000 this week all the way to 18.5950 in a strong 3-day rally.
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Stuart Cowell
Head Market Analyst
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