Animal Spirits Return And The Euro Probes Two-Month Lows

The US dollar trading inside yesterday's range against the Canadian dollar, which itself was inside the pre-weekend range (~CAD1.2740-CAD1.2875). Within that range, the US dollar has pulled back, and with a recovery in risk appetites (rising stocks) and higher oil prices, the Canadian dollar's roughly 0.4% gain puts it atop the G10 currencies today. That said, the greenback is finding support near CAD1.2780 and looks like it can return toward the highs. The US dollar also remains within last Friday's range against the Mexican peso (~MXN20.0850-MXN20.60). It looks vulnerable to a test on the lower end of that range, which is about the halfway mark of the greenback's upside correction that began near MXN19.55 on January 21. Mexico's central bank meets next week, and many are expecting the central bank to deliver a 25 bp rate cut that would bring the target rate to 4.0%.  

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Read more by Marc on his site Marc to Market.

Disclaimer: Opinions expressed are solely of the author’s, based on current ...

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