Dukascopy Market Overviews

Market expectation

EURUSD nudging higher again for trade to USD1.4240 and thus in the upper reaches of the US session range that peaked at USD1.4254 earlier, the move actually building ahead of stocks rebound though correlation is close. Offers remain around USD1.4260 and very light chatter has suggested that sovereigns were earlier sellers into the euro bounce, though not necessarily into the highs. Euro eases to USD1.4235 now. Traders note that likely model and momentum accounts got whipsawed yesterday and will likely be sidelined today without more volatility higher as they appear biased to the upside.

Pound extended recovery to USD1.6459, the rate seen meeting resistance from offers placed around USD1.6460 (76.4% USD1.6482/1.6389). Above USD1.6460 to open a move back toward USD1.6480/85. Support noted toward USD1.6400.

USDJPY holds JPY94.95 area in current trade after the shallowest of dips to JPY94.85 on just mentioned macro sales of dollar and cross vs yen.

Greenback is consolidating the lows again with the retracement overnight after Thursday's solid attempt at a rally a big disappointment for the bulls; traders were looking for the USD to hold gains into Friday with a real chance of an equities sell-off adding to the hopes for a bottom. Although the Greenback is forming a wide trading range and is certainly two-way today analysts think the sentiment is overly bearish and the shorts will cover soon. If equities can't follow-through today analysts would expect a USD rally as risk is taken off the table. Look for a better close today for the USD.