Dollar Lower in Range Bound Markets
The dollar continued to drift lower in range bound markets yesterday as we saw little in the way of news or fundamental changes to take us out of the recent ranges. The Euro gained further ground on stronger than expected German trade data and this was further helped as Catalonia pulled back on it’s hardcore stance on independence and agreed to talk to Madrid – . UsdJpy broke through short term trend line support early in the London session but gained most of the ground back by the end of the day as the US stock market continued to grind higher.
Fears of any further geopolitical disruption didn’t materialise with the North Korean holiday and we didn’t see the subsequent safe haven move, but traders will continue to monitor that situation carefully as it’s not going away any time soon.
Looking ahead to today’s trading and it looks set for another range bound day with little in the way of fundamental data to influence the market. Traders will be looking to the US later in the day when the FOMC meeting minutes come out and hoping for fresh impetus for the dollar, but in the meantime it will be case of trading the ranges with a wary eye on the news wires.
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