It’ll be interesting to see how things play out in the world of FX. This week, we’ve seen some strong moves in the US dollar, and we’re finally at levels that could suggest the buck has limited upside from here.
The fact that the market has now taken a good amount of time to digest the Trump victory in the US election could mean we’ve already seen most of the dollar bullishness from this news priced in, leaving room for a healthy reversal back in favor of other currencies.
When we look at the Euro on a longer-term basis, there’s plenty of strong support down towards 1.05. The possibility for the market to bottom out around this level is certainly one worth considering. The Euro has also taken an added hit from the political uncertainty out of Germany, the extent of which could already be priced in with respect to the downside.
Earlier today, the BoJ Governor was on the wires but held off on providing hints as to what the central bank will do at the next meeting.
Looking ahead, key standouts on Monday’s calendar for the remainder of the day include Canadian housing data, foreign securities purchases, some Fed speak, and the NAHB housing index.
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