Currencies Chop Sideways as Trends Fight for ReversalsPosted 11/22/2019 8:57AM CT |
U.S. dollar futures are modestly higher Friday morning, forging a fresh high for the week. Weekly scheduled data has not been overwhelmingly positive or negative, so it appears the bounce in the dollar index can be attributed to a breakdown in trade talks and technical support. The greenback is still in the grips of a strong bull trend on the weekly chart. Buying support has stepped in above critical trendlines and a double-bottom has reinforced support at the 97 level. The Japanese yen is carving out a bottom as well, drafting some support from a stronger-than-expected Japanese core CPI number. Given its “safe-haven” qualities, the yen is likely to hold support at 92.17 as long as trade tensions dominate headlines. European currencies are lower this week due to their strong inverse correlation to the dollar. Commodity currencies are rangebound. The Canadian dollar bounced off strong support at 75 this week and looks to move higher in the short term.