Markets on Thursday: The USD Tries to Hold Up
Rowan Crosby • 1 min read
It was a relatively quiet day on forex market on Wednesday, although there was a lot of news flying around trying to get things going.
The trade saga continued with Trump’s economic advisor standing down. This rattled markets early on before they staged a strong turnaround.
Forex markets were largely mixed with much focus on the USD/CAD ahead of the rate decision. The BOC appears to have been taking a cautious approach to things and the Loonie ended up beneath key support.
Bitcoin was one of the stories of the day as the digital currency sank to beneath the 10,000 level. BTC simply hasn’t been up to push through resistance and buyers have been drying up.
The USD Holds Up
Key support at the 89.50 level appeared to slow down the falling dollar for the time being. Support at this level certainly isn’t all that strong and we have the potential for more downside to come.
We have a few major news announcements coming up this week with the ECB and US non-farm payrolls. So I suspect this might be a case of the quiet before the storm.
If we can crack 89.50, there’s a strong chance of a sharp fall in the USD.
US Dollar Index (DXY)- 240 min Chart.