Dollar Falls for Seventh Consecutive Day
The U.S. dollar weakened most of the evening before paring some of those losses early this morning.
Still, the greenback is under slight pressure this morning, unable to take advantage of widespread risk aversion. S&P futures point to a lower open and the European Stoxx Index is down over 1% today. Nevertheless, these indexes still remain close to their all-time highs. The Bloomberg dollar index is down for a seventh consecutive session, the longest losing streak since last summer.
There is no tier one data slated for release today or tomorrow. And with no Fed speakers for the remainder of the week, traders will not have much to go on to move currency markets. Earnings season will continue today with a slew of major companies including Johnson & Johnson expected to release results. However, as we experienced overnight, the dollar has had a limited response to the prevailing risk sentiment in recent days. Therefore, dollar bears might be in for a good day as the trend continues to be against the greenback.
What to Watch Today…
- No major economic events scheduled for today
The Euro popped higher early in the evening, reaching a fresh high last seen in early March. The Euro has since ceded some ground but remains near the high end of recent ranges. Much like in the U.S., there is limited economic data slated for release that could move currency markets. Euro traders will continue to watch the progress of the EU’s vaccination program and then refocus on the European Central Bank’s interest rate decision on Thursday. ECB President Christine Lagarde will hold a press conference following the policy decision on Thursday.
The commodity-based currencies were the biggest winners overnight. The Australian, New Zealand, and Canadian dollars were the G10’s top performers. The price of iron ore and oil gained on further signs of a recovery in demand. The commodity rally comes even as global equities are mostly in the red today. The reopening of the global economy and fresh demand narrative remains in place despite today’s dip in risk appetite.
The Norwegian krone rallied 0.7% around midnight, but has since given back all of its gains and opens our session down 0.1%.