The Greenback enjoyed a welcome lacklustre day for once this week remaining relatively rangebound against most cross rates. With a slow day in the headlines and mostly benign speeches from the central banks, the USD managed to hold its gains against most currencies and oscillate within a tight range. The Greenback did eke out a few gains against commodity currencies however and did post a marginal increase against a basket of currencies (DXY). The DXY opens this morning at a healthy 95.12.
Wednesday’s significant event was the central banking forum in Sintra overnight whereby Fed Chair Powell, ECB President Draghi, BOJ Governor Kuroda and RBA Governor Lowe all spoke on a variety of topics. While there was little insight to be had on interest rate forecasts for their respective jurisdictions, all speakers pointed to the growing trade tensions with the United States as a key threat to their respective economies. Ominously, Powell noted ‘changes in trade policy could cause us to have to question the outlook’. The market however, mostly shrugged off the warnings and were buoyed by Powell’s positive comments about the US economy.
Moving into Thursday, the United States Dollar has a quiet domestic economic calendar to digest with traders looking off-shore for direction. New Zealand releases their GDP data this morning, and the Swiss have their Monetary Policy Assessment later in the day. Closing out Thursday, the UK turn to their official bank rate policy announcement for direction.