USD grinds higher, focus on earnings – Scotiabank
The US Dollar (USD) is trading firmer on the session, reflecting the ongoing consolidation in markets amid a dearth of news and focus on upcoming event risk.
Stocks stabilized yesterday but the S&P 500 failed to recover back above its 50-day MA as markets await earnings data later today (Walmart for the consumer, Nvidia for AI) and NFP tomorrow, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD extends rebound ahead of earnings data today
"Global stocks are narrowly mixed while Treasuries and Gilts are underperforming mostly firmer European debt. Among the major currencies, the EUR is little changed, while the JPY continues to underperform as officials fail top push back on losses and markets ponder tensions with China and BoJ tightening timing.
JPY deviation from underlying fundamentals and estimates of fundamental equilibrium suggest to us that losses extending into the 155-160 range are raising the risk of stronger official reaction to the weakening trend."
Source: FXstreet.com