Dollar Trades Heavily, While Prospects Of A Softer And Later Brexit Send Sterling Higher

Brazil's new central banker, Roberto Campos Neto, was confirmed yesterday. Though he does not have much of a record of papers and speeches, he is held in high regard and is understood to be well within the orthodoxy. Mexican officials are hopeful that a trade agreement with China will allow the US to lift the steel and aluminum tariffs that have been levied on it. However, the US Department of Commerce just initiated a new anti-dumping probe into fabricated structural steel from Mexico, Canada, and China.  

The US dollar is holding a little above Monday's low against the Canadian dollar near CAD1.3115. There is an option for $604 mln at CAD1.3140 that expires today. The low for the year was set earlier this month near CAD1.3070. Resistance is now pegged in the CAD1.3160-CAD1.3180  band. The dollar is near the middle of its MXN19.00 to MXN19.35 range. The Dollar Index is being pushed below 96.00 support before the US open. Recall the Dollar Index posted a key reversal on Feb 15 after setting a new high for the year (a little above 97.35). It recorded another outside down day on February 19 after reaching almost 97.10. The 96.00 area corresponds to a 61.8% retracement of the Dollar Index gains since the January 31 low near 95.15. Between that low and current prices, support is seen near 95.50.  

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Read more by Marc on his site Marc to Market.

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