Oil Has Seen an Upturn in Late Trade
After some early weakness, the bullish USD tone was back on track,
but we are seeing some notable resistance which can prompt a short term
squeeze.
This has been threatening over recent sessions, but despite
some softness in the US manufacturing PMIs, the market seems loathe to
give up on notable levels in place, with USD/CAD still eyeing 1.3200 –
topped out at 1.3175 earlier on.
In EUR/USD, we continue to see the
recent 1.1180 level being pressured, but having held 1.1260, we are
still finding bids coming with EUR/GBP sales adding to the pressure.
Euro zone PMIs were also soft today, but the equivalent stats in Germany
were healthy enough.
Elsewhere, AUD/USD also dipped under .7200, but as
reported last week, sizeable bids have been reported from .7200-.7180.
NZD/USD is also seeing support coming in around .6750 or so, with steady
equity markets aiding the latter 2 pairings.
Oil has seen an upturn in late trade, and this should also prove USD restrictive in the near term. Fed speakers earlier in the day offered little new perspective – non voter Williams still advocating 2-3 hikes this year.
