The USD The Leader of The Pack
Rowan Crosby • 1 min read
The surge higher in the Greenback continued overnight, with the US Dollar Index finally breaking out above the much-watched resistance level at 98.00.
Fundamentally speaking there wasn’t really all that much news to drive the big push higher. This has really just been a play that has been taking a fair bit of time to follow through but has been a longer-time frame move in the making.
There was certainly a boost to the USD as risk assets weakened, led by the AUD/USD, that fell hard on the back of a very dovish outlook now that CPI has fallen off a cliff.
At the same time the USD/CAD, jumped strongly on what appeared to be a dovish outlook from the BOC, before the fears that Canada was in a fair bit of economic trouble appeared to be jumping the gun a little.
Equities also fell back after making a record close on the prior day, pulled down my a big earnings miss in Tesla and some general profit taking into the market strength.
Asian Session Wrap
In early Asian trade, there hasn’t been any significant moves in the majors just yet, however, gold remains a little weak, while BTC is holding up above the key support level at $5,400.
Of course, the big news in Asia today will be the BOJ however, it is unlikely to rattle the USD/JPY too heavily, but I will be back with a look at it later today.