Markets on Thursday: USD Holds-up – Downside Ahead?
Rowan Crosby • 1 min read
Markets were getting back into the fundamentals on Wednesday after a few days (or weeks) where it was all about politics.
The USD was modestly higher, however much of the focus was on the BOC rate decision. The Bank of Canada Rates unchanged as expected and Governor Poloz was more dovish than many thought he might be.
He suggested that rates might need to remain below neutral as the economy is not yet able to run at full capacity. However, there is certainly more room for growth.
Unfortunately for the UK and Eurozone, we saw a miss in the inflation figures. Which is sure to be a concern for the respective central banks. The GBP/USD, in particular, was weak after what has been an extended run-up.
Bitcoin has continued to trade around the 8,000 level with no clear direction as yet.
The USD held lower support level at 89.50 for another day. We tried to spike higher on the day, but the sellers came back in.
I’m a little nervous about the fate of the Greenback at the moment. As we can’t really rally. There could be an argument that we are setting up a descending triangle and ready for more downside.
I’m certainly bearish still.