The dollar slide showed no signs of slowing in yesterdays trading sessions as the Euro once again led the way against the beleaguered greenback. The Euro hit its highest level in more than 3 years capping out around 1.2295 overnight with the other majors also making good ground including the Cable which rose above 1.3800 and the Aussie which is fast approaching the 0.80 handle again.
We had very little in the way of fundamental economic releases yesterday and the US markets were closed for Martin Luther King Day, this could have affected liquidity and exacerbated the moves a touch, but the market is still very much in a dollar bearish mode and contrarians will be looking for a fresh catalyst to reverse this sentiment.
Looking ahead to today’s trading sessions and it’s a fairly light day in terms of economic releases, the main focus for the market will be the UK CPI data which are due at 8.30 this evening, with market expectation set at 3% for the headline number and 0.5% for the m/m PPI Input release. Into the New York session and we have the Empire State Manufacturing Index due out and later in the session Kiwi traders will be watching for any significant change in the GDT Price Index.
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