Dollar Finds Some Gains as the Downside Loses Momentum

After a pretty quiet Asian session yesterday we did see a bit of a relief rally in the dollar as the momentum faded from the last week’s move, this was assisted across the sessions as the market priced in a greater chance of the Fed raising rates at the June meeting.

The Dxy managed to bounce well after find support a few times down near 96.80 and now starts the Asian session back up near 97.40. Euro also had a nice move back to the downside off of recent highs up near 1.1270 and the Cable drifted in a relatively tight range as the market digested the recent terror attack in Manchester.

Looking ahead to today and I think we will see a bit more dollar buying go through the market on the back of that increased expectation for a rate hike and a slight increase in optimism in the US economy.

It’s a very quiet day in terms of fundamental data for the first couple of sessions but the real action could come in the New York session as we have the Bank Of Canada’s rate decision at midnight, followed at 4 am by the crucial FOMC Meeting Minutes. It’s these that could bring back a much more hawkish (and dollar positive) sentiment to the market and see the dollar gain more ground.

Good Luck Trading today and if you have any questions or queries, please contact the team at info@sec.rakuten.com.au

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