FX and Equities:
5:00am Big jump on the major pairs vs the dollar, this temporary weakness caused European equities to trade higher bar the cac40.
The EUR did jump up 80 pips on the hourly chart but still trading below 1.35 resistance.
The USD/CHF still range bound from .982 to .986
the USD/CAD followed the EUR/USD after its big rally and sold off slightly from 1.036 to 1.03 currently back on the uptick of 1.03161
the USD/JPY still range bound from 84.1 an 84.3 currently trading on its lower BB bands at 84.09.
The pound made a higher high on its hourly chart (unlike the EUR which failed at resistance) but is currently on the down tick down to 1.5864 from 1.589
TAKE AWAY:
The dollar strength we saw at the end of Asian Trading and the start of EURO equity opens is now mixed. On the whole the dollar strength picture is still in tact and as the US opens we may see continued strength. This down tick is a good opportunity to scale in if you are dollar bull in the coming days/weeks.
The brief dollar weakness is showing up in equity strength, though if I am correct continued dollar strength will lead to a down day for US equities.
-Alexander T Lê
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