The periods of data silence often serve as a useful indicator of the underlying bias of the market in FX. Until now this week, the tendency to increase short positions in USD has been clear, although the dollar remains remarkably undervalued in front of the majority of the G10 currencies when judging by short -term factors as rates and differentials of shares, says Francesco Pesole, FX analyst of ING.
Movements above 100.0-100.5 in DXY can be ephemeral.
“An intensification of the holders of the G7 meeting is expected in Canada until tomorrow. There is a low probability but a high impact of any suggestion that the long -standing compromise of the G7 of allow Markets will be attentive to any signal that currency agreements are on the table.
“Beyond this, other news of the summit will probably not harm the dollar. While a broader impulse to end the war in Ukraine would have led to a certain weakness of the dollar until a few months ago, the dollar is no longer traded as a traditional safe shelter. Coincidence, recent developments suggest that the US administration tends to reduce commercial tensions after direct conversations with other leaders Descalada should provide some support to the dollar. “
“The inclination of the markets to sell the dollar in the rebounds should be maintained, and the movements above 100.0-100.5 in DXY can be ephemeral.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
