[MARKET ANALYSIS] DXY is flat amid the mixed and uneventful performances in its peers and as participants await the midterm elections
ORIGINAL · Newsquawk[MARKET ANALYSIS] DXY is flat amid the mixed and uneventful performances in its peers and as participants await the midterm electionsRead originalHide original
DXY: Flat Trades uneventfully as mixed geopolitical headlines dominated weekend newsflow and with markets bracing for the midterm elections and whether US President Trump will resume strikes on Iran, while hawkish comments from a couple of Fed officials on Friday regarding the need for further hikes did little to shift the dial and a suggestion from President Trump that they are close to a deal with Canada also failed to spur price action. EUR/USD: +0.1% Eked slight gains in uneventful trade and after the latest protests in France were mostly peaceful, although Fitch placed France's credit rating on negative outlook in an unscheduled move on Friday. GBP/USD: -0.1% Marginally softened following its recent pullback beneath the 1.3400 handle amid quiet catalysts for the FX space, while there were reports that the BoE is considering easing restrictions on higher-risk mortgage lending. USD/JPY: +0.3% Resumes last Friday's intraday rebound from support around the 157.00 level, with the pair unfazed by the quasi jawboning from Japanese Finance Minister Katayama, who noted that PM Takaichi said yen's undervaluation is problematic and that the government remains ready to take action against disorderly FX moves, but also noted that conditions have improved from before and that she couldn't say if current levels are good or bad. Antipodeans: AUD/USD -0.1% / NZD/USD -0.3% Slightly weakened in a continuation of the recent choppy performances and mixed data from Australia, while the latest official Chinese PMI data from over the weekend disappointed, with all figures slipping beneath the 50 benchmark level, although the Chinese RatingDog Manufacturing PMI remained in expansion territory.
The report described a flat DXY and modest, mixed moves in major currency pairs, with election, geopolitical and policy headlines providing context but little reported dollar impact.
News detail
DXY: Flat Trades uneventfully as mixed geopolitical headlines dominated weekend newsflow and with markets bracing for the midterm elections and whether US President Trump will resume strikes on Iran, while hawkish comments from a couple of Fed officials on Friday regarding the need for further hikes did little to shift the dial and a suggestion from President Trump that they are close to a deal with Canada also failed to spur price action. EUR/USD: +0.1% Eked slight gains in uneventful trade and after the latest protests in France were mostly peaceful, although Fitch placed France's credit rating on negative outlook in an unscheduled move on Friday. GBP/USD: -0.1% Marginally softened following its recent pullback beneath the 1.3400 handle amid quiet catalysts for the FX space, while there were reports that the BoE is considering easing restrictions on higher-risk mortgage lending. USD/JPY: +0.3% Resumes last Friday's intraday rebound from support around the 157.00 level, with the pair unfazed by the quasi jawboning from Japanese Finance Minister Katayama, who noted that PM Takaichi said yen's undervaluation is problematic and that the government remains ready to take action against disorderly FX moves, but also noted that conditions have improved from before and that she couldn't say if current levels are good or bad. Antipodeans: AUD/USD -0.1% / NZD/USD -0.3% Slightly weakened in a continuation of the recent choppy performances and mixed data from Australia, while the latest official Chinese PMI data from over the weekend disappointed, with all figures slipping beneath the 50 benchmark level, although the Chinese RatingDog Manufacturing PMI remained in expansion territory.
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