The US dollar remained volatile against a basket of currencies during the opening of Thursday session. After the previous minimal gains, the greenback failed to sustain the momentum as the geopolitical concerns lingered before the summit between U.S. President Donald Trump and Chinese President Xi Jinping. Adding to the negative sentiment, the market players remained skeptic over the Fed minutes reading.
After the Article 50 was triggered, the EUR/USD currency pair slid from 1.08980 levels to 1.06710 levels. As seen in the chart provided below, the pair remained in a tight range, however, the euro still led the game as it advanced 0.08 percent to 1.0673 against the US dollar as of 07:34 UTC. The currency pair was a bit above its 50-day SMA of 1.06658 and 20-day SMA of 1.06667, still no signs of a major jump for the rest of the trading session.
On the other hand, the British pound was likely more steady compared to the euro. The GBP/USD pair lost 0.02 percent to 1.24810 as of 07:40 UTC, however, the pair has started to recover from the dip after the Article 50 was prompted. From the March peak of 1.26105, the pair has been already back at 1.24000 levels since Monday. Based on the chart below, there could minimal fluctuations within the session, but the pair could reach 1.24900 levels and probably could consolidate at 1.25000 levels. Currently, the pair is touching its 20-day SMA of 1.24807 and has been above its 50-day SMA of 1.24582.
Following the swift jump within Wednesday session, the greenback wobbled again against the Japanese yen. The USD/JPY pair hit Tuesday’s bottom at 110.471 as the uncertainty on US economy loomed over the economic plans of President Donald Trump alongside with the anticipation for the upcoming Fed minutes.
As of 07:59 UTC, the USD/JPY pair has lost 0.17 percent to 110.52. The pair was trading below its 20-day SMA of 110.787 and 50-day SMA of 110.688, indicating a negative tone. In a wider perspective, this could be the lowest level for the pair since Trump took the office in January. The USD/JPY soared at 118.136 during the hype of Trump’s victory.
Now that the economic agendas of Trump face criticisms, the investors could have lost their enthusiasm for the US dollar. Nevertheless, the upcoming rate hike prospects of the US central bank could lift the greenback again.
As of 08:16 UTC, the Australian dollar declined 0.46 percent to 0.7537 while the Swiss Franc advanced 0.12 percent to 1.0036 against the US dollar. The greenback managed to tick 0.06 percent higher against the Canadian dollar and 0.14 percent higher against the Chinese Renminbi. The US Dollar Index was down 0.08 percent to 100.38 while the Euro Index was steady at 86.88.
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