Dollar, yen, and swissie surrender earlier gains
And with that, the loonie, euro, and kiwi are virtually flat against the greenback in trading today now. The obvious risk off signs are still there with the equities market continuing to move lower and Treasury yields are near session lows now as well. Yet, we're not seeing the same kind of flows materialising in the currencies space following some early movement at the start of the session.
A good example of that is EUR/USD which has now moved back to near flat levels after touching a low of 1.1543 earlier. The pair tested the 100-bar MA (red line) on the 4-hourly chart once again before rebounding and is now testing the 200-bar MA (blue line) @ 1.1580.
I've not seen any specific catalysts for the moves here and the peculiar thing is that the aussie and the pound continues to stay weak on the day. It's really a mixed bag right now and apart from pointing towards technical levels, there isn't much else to stir the pot.
All else equal, maybe each currency has an individual tailwind behind them. The loonie has a lot to look forward to later on today with the BOC decision and NAFTA talks so positioning is surely something to consider.
As for the euro, there's reassurance (if you'd only read the headlines) from Italy's government has done well to soothe investors and that is helping the bond market. And then there's added talks of Germany wanting the ECB to step up their game and normalise policy faster.
As for the kiwi, technically the daily support level @ 0.6545 is still one that sellers have been finding difficult to break below still so far this year:
