Dollar keeps a little softer to start the session

Technical Analysis

Author: Justin Low | eurusd

The greenback keeps lower to start the day, with the risk tilt more positive

The dollar and yen are the laggards still as we get towards European trading, owing to a slight nudge higher in stocks as the risk mood remains more optimistic.

EUR/USD is keeping at the highs for the day but is finding it tough to break through some near-term resistance around 1.1750 for the time being:

EUR/USD H1 01-10
After braving past month-end flows yesterday, market participants will be looking to latch on to the next narrative and so far that lies with a more positive risk mood for now.

US stimulus hopes are arguably what is driving that but can such sentiment last if things turn sour once again in Washington?

That is a key consideration, alongside the conclusion of Brexit negotiations and the US jobs report tomorrow as we look to wrap up the trading week.

For now, the risk-on narrative stays but there are still risks that it could unravel in the session ahead; likewise for currency gains against the dollar as such.
For bank trade ideas, check out eFX Plus

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose