The crude oil price reflects the uncertainty for energy supply going forward and the potential for supply disruptions. The US Dollar movements are also dominating markets. Where to for WTI?
British Pound emerged as the weakest link, facing headwinds following subpar construction data. Not far behind in performance was the Canadian Dollar, which felt the pressure from the ongoing plunge in oil prices. Dollar, while still in a commanding position, appears to be taking a pause, digesting its recent upticks. Contrastingly, Australian and New Zealand Dollars found some respite as the market's risk aversion sentiment momentarily eased. Meanwhile, Euro, Swiss Franc, and Yen are all moving within a mixed range, with no clear directional bias discernible.
The US Dollar retreat kicked off on Monday after hawkish comments from BoJ Governor Ueda sent USD/JPY tumbling before the broader DXY (USD) index took a hit. Lower USD?
The Japanese Yen pierced prior lows with the US Dollar reclaiming the high ground on lofty Treasury yields and risk assets tumbling as China woes continue. Will USD/JPY make a new peak?
The Euro backed away from trend line resistance with the US Dollar regaining some ascendency after Fed speakers repeated their tight policy mantra. Where to for EUR/USD?