Dollar seeks direction
The US dollar is trading in a mixed mode on Thursday, appreciating against the euro and declining against the Japanese yen.
The US dollar is trading in a mixed mode on Thursday, appreciating against the euro and declining against the Japanese yen. The dynamics reflects the lack of risk appetite in the global financial markets as investors continue to worry about slowing global growth, the US government shutdown, and political and economic issues in Europe.
The greenback is moving mostly directionless recently in absence of clear drivers. On the one hand, the currency feels the pressure from the political crisis in Washington. As there are no any movements in settling record-long shutdown, there are few chances that the buck could appreciate substantially in the foreseeable future. On the other hand, Brexit turmoil, signs of slowing growth in Europe, and the reducing probability of raising rates by the ECB and Bank of England cap the downside potential in the USD.
As for the USDJPY pair, the downside risks continue to prevail as risk aversion could resume and intensify due to a number of global risks that remain unresolved, including the US-China trade war. Technically, the pair struggles to stay above the 109.00 figure since the start of the month and will hardly make a decisive break above this level in the days to come due to investor cautious behavior. On the downside, the immediate important support comes at 108.00.