Dollar had been the strongest for most of the week but lost it first place at the time, as treasury yields retreated. Instead, resilient risk appetite in the US, as well as firm oil price helped Canadian and Australian Dollars stole the first and second place. On the other hand, Euro ended as the worst performing one, weighed down particularly by selloff in crosses. New Zealand Dollar was the second worst. As rally in yield lost steam and stocks proved to be resilient so far, we'd argue that Dollar index might not be ready to take out 94.46 key fibonacci resistance yet. But a bearish reversal in the greenback is not expected for now. A question ahead is whether Euro's selling would persist even if Dollar turns into consolidation. In particular, the common currency looks rather vulnerable against Canadian Dollar. |
