USDX creeping up, EURCAD staying put despite the noise
Watching the $USDX this morning, it's ticking up to 25.58 after holding 25.51-25.58 today. It’s not a huge move, but given the general uncertainty around global growth and rate hikes, it does make you wonder if the market is slowly, almost imperceptibly, pricing in a stronger dollar in the medium term. Could be some early positioning ahead of next week’s data.
Meanwhile, $EURCAD is just sitting there at 1.6042, barely moving from its daily range. You’d think with all the chatter about European inflation and Canadian employment, there'd be more volatility. Makes me think a lot of the 'news' is already baked in, or maybe everyone's just waiting for a bigger catalyst. Keeping an eye on any breaks from these established ranges, but it feels like the big moves are yet to come.
It's interesting you bring up the slow USDX move. I've been seeing similar whispers about a potential medium-term dollar strengthening, even with all the noise. Do you think this is more of a flight to safety play, or genuine anticipation of more hawkish Fed action than currently priced in?