USD Wobbles a Bit, Waits for Other Currencies to Seize

Yesterday and today morning, we finally see some wobbling in the strength of the USD. The USD has been extremely strong over the past 2 weeks ever since Trump was elected as the US President and we have been seeing the US yields going higher, USD gaining in strength and the US stock markets sky rocketing. Everything US positive, in short. But yesterday we finally saw some weakness in the USD though this weakness was fully capitalized on only by the pound.

Other currencies like the euro and the yen could not make much use of the opportunity as they continued to trade weak against the dollar. The euro didn’t get much help from Draghi who, as is his tendency, didn’t speak much about the monetary policy except the mundane stuff. So the euro continued to trade weak yesterday and did make a brief visit to the lows though it trades at the highs of its ranges this morning as we write this.

The big news of the morning so far has been the earthquake in Japan but the damage does not seem to be much, as of this writing, and the USDJPY continues to trade closer to 111 than to 110. We can expect the little weakness in USD to continue for today as well though the dips in the various currencies versus the USD have been so little that it cannot even be considered as weakness.

Looking ahead to today, there is no major economic news to be released from the US or the Euro region with the only news of note being the Core Retail sales data to be released from Canada. With talks about production cuts in oil by the producers also doing the rounds and this leading to rise in oil prices, expect some serious volatility in the USDCAD pair for today, especially towards the NY session.
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