Morning Preview: USD Is Back in Vogue
Rowan Crosby • 1 min read
After a rough end to the week, the USD found some strength on Monday trade as fears over Hurricane Irma and North Korea passed. Equities also rallied and the safe havens sold off.
The retrace in the USD is what we had anticipated, but the question needs to be asked, where to from here?
The USD has still been bearish and I’m not yet ready to jump ship to the bull camp. We have key CPI data out this week in the US which might seal the fate of the USD for the week.
Where to for the USD/JPY?
The Yen fell back, while the USD rallied on Monday. This was really just a retrace from the flight to safety trade at the end of last week. We’ve managed to pull back up to the 109 level which has been a really strong support level.
For now I’m looking to sell above 109.50 and buy at 109 during the Asian session. I don’t expect a significant amount of follow through in Asian trade after a strong overnight rally.