A Slower Day Today
Ian Copsey | Feb 21, 2017 11:51PM ET
Yesterday was not a bad day at all. I was a bit surprised with the earlier follow-through higher in the dollar over the Asian session although I had always been looking for follow-through in Europe and North America. There was just one dissenter; that being GBP/USD that must have had three or five too many beers at lunchtime so it staggered home in the middle of the night having gotten lost. That reminds me of my colleagues back in the 80’s who loved a liquid lunch…
So, we’ve seen a decent move, but as we move into the Asian session I don’t think we’ll get a repeat of yesterday’s rush to buy dollars. I wouldn’t rule out a follow-through in the dollar at some point, but there will be pullbacks and that could see some generally (modestly) narrow range trading for a while throughout the day. As North America enters the fray there could be some minor fireworks being triggered.
EUR/JPY developed very well. I’m still expecting losses, but just keep your eyes focussed on both EUR/USD and USD/JPY to make sure all is well within the balance. There are some turns that could develop today, or maybe early tomorrow.
AUD/USD still loves its boomerang. Just as it looked like it would extend losses, it has begin to push back higher. The general outlook I have still remains and that should give you an idea of how to handle this pair today.
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