Dollar At Support Without Spark Like FOMC to Decide Rebound/Break
• USDollar has intensified the pressure on bull trend's floor, but no deciding fundamental catalyst in sight
• Risk rebound uneven with Yen crosses behind the pace set by global equities
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We kicked off Monday with the same trends that shaped the market's course the week before. Risk appetite extended its buoyancy with an increasingly divergent pace of climb. Where commodities were still setting the pace, equities were struggling for momentum, Emerging Market assets were mixed and Yen crosses were notably struggling. Momentum is a key ingredient to the drive of general risk appetite, so its absence strikes a cord for those willing to jump on the tempting speculative rebound. Sentiment is perhaps only slightly more active a driver than relative monetary policy for the FX market. There are key central bank decisions due over the next two weeks - ECB, Fed, BoJ, SNB, RBNZ, BoC - but speculation is already stretched for those that are seen debating their next move. We discuss what the key technical levels against cooling themes and non-critical event risk means for trading ahead in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.