USD steadies, undertone remains weak – Scotiabank

Source Fxstreet

The US Dollar (USD) is consolidating. The major currencies are trading mixed overall as markets steady and take stock of developments after yesterday’s steep US equity declines. Asian and European stocks are mixed to slightly softer and US equity futures are in the green, Scotiabank's Chief FX Strategist Shaun Osborne notes.

USD steadies, trades mixed on majors

"Treasurys remain soft and are underperforming European government bonds by 2-3bps while gold touched another new high just above $3500. The USD sell-off has come a long way in a relatively short space of time which may allow for some short-term stabilization in the bear trend. But USD-negative drivers—concerns about Fed independence, no obvious tariff off ramp and weakening US economic prospects—may not be resolved soon enough to save the USD."

"President Trump continues to talk positively about trade talks and how close some deals are to getting over the line. But reports have emerged from the US/Japan discussions which suggest that Japanese negotiators are frustrated by US counterparts constantly moving the goalposts, delaying progress. Recall that President Trump reportedly wants to be 'personally' involved in all trade negotiations. A quick resolution to the tariff uncertainty seems unlikely at this point."

"While the USD looks a little steadier so far today, note that that USD/JPY traded briefly below 140 amid reports that the BoJ sees no need to alter its basic rate stance (of gradual rate hikes). The 139/140 zone represents major technical support for the USD and a sustained push below this range will, we think, signal a further and significant drop in the USD is unfolding. There are a number of Fed speakers on tap today and it’s hard not to believe that the issue of Fed independence will not come up at some point in the discussions."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
USD/CHF remains depressed below 0.8000 amid a moderate market optimism The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
Author  FXStreet
10 hours ago
The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
placeholder
OPEC+ Announces Further Production Increase, Crude Oil Prices Likely to DropWTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
Author  Insights
10 hours ago
WTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
placeholder
Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focusGold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
Author  FXStreet
11 hours ago
Gold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
placeholder
US Dollar Index (DXY) remains depressed below 97.00 on trade talks, US debt woesThe US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
Author  FXStreet
11 hours ago
The US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
placeholder
UK-US trade agreement is now in forceUK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
Author  Cryptopolitan
11 hours ago
UK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
Related Instrument
goTop
quote