Markets on Friday: USD Weakens at Resistance
Rowan Crosby • 1 min read
The USD was the weakest performer on the day. While the GBP, was the big winner, even without a rate hike.
The Greenback was looking for a move higher, but a less than impressive Philly Fed gave it a smack back down to earth. We also had a Supreme Court ruling that paved the way for sales tax to be collected from online retailers. Something traditional bricks and mortar companies have been waiting for, for more than 20 years.
The GBP was the strongest, despite the BOE leaving official rates unchanged. There were signs of a hawkish tone with the vote not being unanimous. And that has seen the odds of a rate hike increase going forward. Which added to the upward pressure on the GBP/USD.
Early in Asian trade we saw some positive signs for inflation in Japan. However, we couldn’t really get price moving too far.
USD is at Resistance
The USD tested the resistance level at 95.00, but was unable to hold on. The big red candle – the smackdown – sure casts more doubt over it in the short-term.
I am still looking at the upward target of 96.20-96.50, but it looks like we have plenty of work to do. The calendar is thin on Friday so I suspect it will be tough to get moving this week.
To the downside 93.30 while still a distance away, is worth watching still.