Thursday, November 13, 2014

USD mixed with little to determine trading trends

•     USD mixed with little to determine trading trends

–    GBP weakens on dovish Bank of England inflation report
–    Commodity currencies generally stronger, led by NZD as manufacturing PMI rises
–    AUD dips after RBA Deputy Gov. threatens intervention

•     USD well underpinned both fundamentally and technically

–    Fundamentals:  monetary policy divergence continues vs JPY, GBP and EUR
–    Technicals:  DXY index recently broke  above the 30-year trend line, signaling perhaps the beginning of a long-term uptrend
–    Only positioning is worrisome, as speculators have record net long USD positions

•     Today:
–    Eurozone: Final German CPI, French CPI for October

–    US: JOLTS survey expected to show small decline in the number of job openings. 

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