The USD is attempting to recover back some of its earlier daily losses this morning, after two consecutive daily declines that brought it below the 20 DMA of the US Dollar index (DXY). Currently price action is testing the 20 DMA at 95.53.
The Dollar’s losses come on the back of the last policy communication out of the Fed last Wednesday. The Fed moderated its long term interest rate expectations but left the option for another interest rate rise this year open.
Asia was mostly negative this morning with the major equity indices there heading lower. The Japanese Nikkei was reportedly suffering as the Yen strenghtened. Overall it seems that, after this week’s major policy events from the Fed and also the BoJ, investors are trying to find the new trend as the dust settles.
Today the economic docket will give us an insight on EZ PMIs, Canadian CPI, and US Manufacturing PMI.
In the meantime the EURUSD and USDJPY trends remain in neutral territory with the repsective currencies trading at 1.1196 and 101.08 at the time of writing.
