Markets on Wednesday: The USD Fades
The USD was again a weak performer in trade yesterday as the trade talk seemed to dampen the mood. US equities were another story, as they continued their push higher. Although volume was muted.
The talk around today is that the Canadians are ready and waiting to deal after the US-Mexico talks ended in a positive result. The CAD was busy yesterday as a result. For more detail on the end of NAFTA, Shain has some great insights.
The majors were all busy and the CHF was strong while the AUD was particularly weak in what has been an up and down week.
The attention will again be on the USD as we get a look at GDP. Expectations are for 4.0%, which is slightly lower than the previous reading. But still a very strong result.
The USD is Weak
The resistance level turned support at 95.00 is looking like it is finally broken. The trend is also in tatters.
Price fell to around the 94.50 mark and saw some buying come in. We are still looking weak at the moment and I am still waiting for the bounce to come.
I’m not sure when the turnaround will come. A strong GDP reading will help, but it appears the bears are weighing on price at the moment.
I still like the long side here, particularly in trades such as shorting the AUD/USD and EUR/USD as mentioned yesterday.
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