FOREX
After a strong start, the US dollar gave away the gains accrued during early Thursday trading, and is now almost flat against a basket of other major currencies. The greenback has recently been in greater demand due to its haven appeal, as investors, fearful that recent US economic data which revealed a slowdown in activity, may be the first signs of an incoming contraction. On the other hand, the prospects of a recession will give the Federal Reserve some food for thought and may lead to a softening of its ongoing rate hiking; a scenario likely to drive dollar weakness. Caught between these two vectors, the greenback is struggling to find direction, with tomorrow’s release of payroll data expected to offer some short-term clarification.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrades
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