After a big surge overnight, the dollar is backing and filling in early US trade. Dealers note sales from Asian central banks weighing broadly on the greenback this morning. A move above resistance in EUR/USD at 1.4465/70 could prompt a more significant squeeze. EUR/USD trades at 1.4445 just ahead of 9:00 am in NY.
The BOC decision is next up for the market. Dealers are split as to whether the Bank will trim rates or hold steady. With inflation still high elsewhere, we’d side with a no-change outcome.
