FX Update- USD
The greenback continues to fade in response to extended selling pressure in equities and flight-to-quality buying into US government paper. Uncertainty surrounding the sustainability of GSE’s Freddie and Fannie has filled the void left by the blank economic calendar and may continue to put pressure on USD going forward. The USD Index is clinging onto marginal gains at 76.887.
EUR/USD fell briefly below 1.47 late in the overnight session, but has been on a upward path ever since and is currently trading just below 1.4750. EUR/USD continues to show consolidation under 1.48 with the 9-Day moving average just above today’s range at 1.4832.
Cable, down 0.3% to 1.8612, is in the middle of its overnight range and is also showing signs of consolidation above 1.86. USD/JPY, up 0.15% to 109.87, is holding onto positive territory despite selling pressure in equities but has not been able to maintain the 110 handle after surpassing it overnight. USD/CHF is up 0.45% ti 1.097 and USD/CAD is up 0.25% to 1.0638.