Market News & Analysis
FX Handover: Short Covering Boosts Dollar
Fawad Razaqzada June 25, 2019 1:22 PM
- Short-covering had helped to boost the dollar after its multi-session falls following the Fed’s dovish hold last week. Safe haven assets which had rallied sharply overnight were on the retreat with gold coming off its multi-year overnight highs although yen was still in the positive. Franc was the weakest.
- Most majors had already created daily ranges consistent with their ATR (10), meaning dollar’s bears may see this as an opportunity to re-enter at better levels as we head to the start of the US session.
- We think stocks could resume higher this week, with investors likely to anticipate a positive outcome from the G20 meetings regarding US-China trade spat.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.