A familiar start to European morning trade
1 min readWe’ve seen this story before
Dollar a touch weaker. Treasury yields slightly softer. Equities in a bouncy mood. It all reads to a similar script as yesterday but will the ending today be different?
Just be wary of the timing as well with the dollar having picked up bids closer towards North American trading yesterday. That is something to watch out for in case today’s trading action plays out in similar fashion to what we saw 24 hours ago.
As much as month-end and quarter-end flows are obscuring the picture over the past few sessions, it is hard to argue against the charts when it comes to the dollar now.
EUR/USD is on the brink of a further collapse as it contests key support near 1.1600 and a firm break below that is likely to set off another flurry of dollar bids:
Adding to that is USD/JPY hovering near key resistance at 112.00 and GBP/USD also in a bit of a freefall potentially towards 1.3200, giving dollar bulls more impetus as we navigate through the week.
