Dollar Ends Mixed
If you blinked, you missed it. With the exception of a minute here and a minute there, the foreign exchange market Monday was beyond quiet, even bordering on sleep inducing at times. EUR-USD traded quietly within about a 15 pip range, responding only slightly to stock which for most of the session traded on either side of flat. With little data for the market to focus on this week until Friday's September retail sales report, few were willing to commit fresh capital.
USD-JPY posted significant gains overnight, but NY traders were apparently happy to bang around within the 124.10/40 range through the day. Fear of a hard landing in Japan should keep the dollar in demand for the time being. USD-CAD tested the 1.5900 level early on, but IMM accounts were waiting on the bid. Subsequent trade saw the pairing rally modestly. Sentiment appears to be favoring the downside, unless the 1.5950 level can be breached soon.
AUD-USD was finally able to break over 0.5500, but follow through was limited to the 0.5505/10 region. Domestic names are said to be on the offer into 0.5530. Looking ahead, we may be in for more of the same Tuesday, with the dollar perhaps primed to consolidate further until Friday's retail sales data.