After the upbeat FOMC meeting minutes failed to boost the greenback, a second wave of selling is seen in the following US session. The release of the weekly jobles claims seems to serve as an excuse or the trigger for a bit more of selling off.
Weekly unemployment claims stood on 244K, very marginally worse than 244K but still in line with recent lows.
What is wrong with the dollar? This may be part of the Donald Disillusion. Recently minted Treasury Secretary Steve Mnuchin made a few media events and laid out the new administration’s intentions. All in all, the agenda is not that ambitious, to say the least.
The main focus is tax cuts, and the secondary is regulation. There was no mention of infrastructure spending.
And what about taxes? These will be carved out with Congress during long months, hopefully reaching a conclusion in the summer. This is not the hopeful and “phenomenal†plan described by his boss Donald Trump.
And what about growth? Mnuchin sees a growth rate of 3% or higher, but not now: only in 2018. This is a very long time from now.
- EUR/USD is trading aroudn 1.0580. Support awaits at 1.0520 and resistance at 1.0650. The common currency is sensitive to the opinion polls coming out of France.
- GBP/USD is hugging the 1.25 levels. An updated report on immigration failed to move sterling.
- USD/JPY stands out with a big fall, trading around 112.72. Low support is at 111.40.
- USD/CAD is under 1.31 once again. Support awaits at 1.30. Jitters in oil prices hurt.
- AUD/USD defies the weak Capital Expenditure report, which was certainly worrying, and climbs over 0.77. Resistance awaits at 0.7740.
- MZD/USD is tackling resistance at 0.7230.
