Greenback Marking Time
The US dollar marched in place in another dull overnight session characterized by narrow ranges. The data cupboard was bared and Fed Chair Janet Yellen’s Humphrey Hawkins testimony is tomorrow.
Still, some currency pairs had their moments. AUDUSD was traded higher, supported by better than expected economic data The National Australia Bank (NAB) Business Conditions survey rose to 15 from 12, while the Business Sentiment survey came in at 9 from the previous 7, recorded in May.
In Japan, USDJPY rallied from a low of 114.04 to 114.47 as positions were tweaked ahead of Ms. Yellen’s testimony on Wednesday and because US Treasury yields ticked higher.
EURUSD was stuck in a tight band. Traders are looking past another US interest rate increase and which has underpinned the single currency ahead to the start of European Central Bank tapering
Sterling was largely ignored during the Asia session but came to life in Europe. The prospect of higher UK interest rates has underpinned GBPUSD however the ongoing concerns surrounding Brexit is capping the topside.
USDCAD drifted higher in overnight trading but remains well -below the pre-employment data levels on Friday. Broad US dollar demand and a whiff of profit-taking ahead of Wednesday’s Bank of Canada policy decision is giving the support.
Oil prices were flat in Asia but they drifted lower in Europe. Oil traders are concerned that rising US, Libya and Nigeria production has more than offset Opec supply cuts, leaving the world awash in crude. Opec maintains the view that the market will balance itself by the end of 2017. WTI is in a minor uptrend while prices are above $43.70, looking for a break of $45.10 to extend gains to $47.00. A move below $3.70 suggests a drop down to $42.00.
FX Ranges for major currency pairs