Published: 2024-08-26T13:28:49.000Z
USD flows: Small USD Recovery, But
Director of Research , Macroeconomics and Strategy
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USD is gaining some ground against the EUR in early NY trading, which appears to be largely technical and a partial correction to Friday move.
The weekend Israel/Hezbollah missile strikes has not prompted a major risk off movement in other asset markets, with it not being seen as a prelude to war. July U.S. durable goods jump has not impacted FX, given June weakness. The focus is on any further clues for 25bps v 50bps at the Sep 18 FOMC meeting. Technically the market wants to test 1.2500 and a move could be seen up to 1.1200 by mid-week before choppy consolidation kicks in. JPY is holding onto gains v USD and EUR however. Small GBP gains also holding, as BOE Bailey at Jackson Hole suggests slower easing pace than the ECB or Fed.