Broad dollar strength has been seen across the board today except for the Canadian dollar which is rising as well. Perhaps it is the market pricing in the odds of change we can believe in and Canada is benefiting because they will bask in His reflected glow. Dealers are having difficulty explaining price action today with much precision.
The one macro influence that makes sense today is GBP weakness as the market takes seriously the possibility of a 100 bp cut from the Bank of England. Beyond that, some point to residual demand for dollars left over from the month-end period. Either way, the Euro is boring in on support at the 1.2645 level. More support is eyed at 1.2625 followed by 1.2585, a former range top.
The economic gloom remains thick today; following up Ford’s poor sales is word that Toyota slumped 25% on October.
