Light changes across the board in FX
The market mood is much improved to start the day as Evergrande fears are cast aside again for now, helping to see the yen a touch weaker while commodity currencies are slightly higher even as we get to European morning trade.
But the overall changes aren’t anything significant, leaving little for traders to really work with as we continue to count down to the FOMC meeting later.
USD/CAD is a fine example of that as the early retreat yesterday stalled at the 38.2 retracement level at 1.2743 before bouncing back above 1.2800 amid a deterioration in risk sentiment during North American trading.
At the end of the day, price action stuck back around the figure level and the drop today hit a low of 1.2770 but it isn’t hinting at much of anything from a technical perspective.
Price action is still keeping above the key hourly moving averages so buyers are in near-term control but the push and pull in and around 1.2800 continues to leave a lot to be desired and will likely only get sorted out through the Fed later today.
The sentiment in the pair pretty much exemplifies the mood among major currencies right now, that being there is a slight tilt towards siding with the more positive risk sentiment but nothing major in terms of technical significance – especially for the dollar.