US Dollar Falls Amid Pre-Positioning Before FOMC Rate Decision
- US Dollar corrects lower after Friday’s surge in the wake of firm CPI data
- Commodity currencies rise with S&P 500 futures as risk appetite recovers
- Overnight trends likely to carry forward but lasting follow-through unlikely
The US Dollar traded broadly lower overnight in a move that looked to be corrective following the surge triggered by better-than-expected CPI data on Friday. The yields- and sentiment-sensitive Australian, Canadian and New Zealand Dollars outperformed as S&P 500 futures rose and Treasury bond yields edged lower, seemingly reflecting moderation in the “hawkish Fed” narrative.
A quiet economic calendar in European and US trading hours suggests Asia-session trends may find few barriers to continuation. Significant follow-through seems unlikely however, with traders probably unwilling to commit to a firm directional bias ahead of this week’s pivotal monetary policy announcements from the Bank of Japan and the Federal Reserve.
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|22:00||NZD||Westpac Consumer Confidence (3Q)||108||-||106|
|22:30||NZD||Performance Services Index (AUG)||57.9||-||54.5|
|23:01||GBP||Rightmove House Prices (MoM) (SEP)||0.7%||-||-1.2%|
|23:01||GBP||Rightmove House Prices (YoY) (SEP)||4.0%||-||4.1%|
|01:30||CNY||China August Property Prices||-||-||-|
|08:00||EUR||Current Account SA (JUL)||-||28.2b||Low|
|08:00||EUR||Current Account NSA (JUL)||-||37.6b||Low|
|08:00||CHF||Total Sight Deposits (SEP 16)||-||515.8b||Low|
|08:00||CHF||Domestic Sight Deposits (SEP 16)||-||438.6b||Low|
|09:00||EUR||Eurozone Construction Output (MoM) (JUL)||-||0.0%||Low|
|09:00||EUR||Eurozone Construction Output (YoY) (JUL)||-||0.6%||Low|
|CCY||Supp 3||Supp 2||Supp 1||Pivot Point||Res 1||Res 2||Res 3|
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.