The Fed And Earnings On Tap

Canada and Mexico have light economic diaries today. The US dollar was rebuffed yesterday near CAD1.2780 and retreated to close on its lows just above Monday's lows (~CAD1.2680).  Despite the downside reversal, follow-through selling was minor, and the greenback is trading around CAD1.2720 in the European morning (FXC).  Ahead of the FOMC outcome, we expect the US dollar to come off and possibly return toward the lows (UDN).  Similarly, against the Mexican peso, its initial rally yesterday was reversed, and the greenback settled on its lows, a little below MXN20.00.  Since bottoming on January 21 near MXN19.55, the greenback has been holding above the five-day moving average found near MXN19.97 today.  Maybe an inside day is the most likely scenario (yesterday's range ~MXN19.9350-MXN20.29)  

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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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