The much beleaguered dollar got a bit of a relief rally on Friday having spent most of the last week on the back foot. The Dxy did find new lows once again early in the day on Friday trading down to 88.34 before coming back strongly later in the sessions to rise back above 89.00. The Euro was a big mover as it managed to make a new yearly high at 1.2555 before dropping swiftly back to finish the day near 1.2400 this saw the Euro on the defensive not just against the dollar but also against all the other major currencies.
It looks like being a relatively quiet start to the week with nothing in the way of tier 1 economic data due for release today and both China and the US on holiday, this which should see volatility calm down a bit across the board. Geo-political factors look set to be the main catalysts for fresh moves as the potential for a Trade War hots up with the US preparing to implement tariffs on Aluminium and Steel imports following on the back of the indictment of Russian nationals for interfering in the US election.
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