Article / 08 March 2017 at 14:15 GMT

FX Board: USD broadly firmer, but key resistance remains

Head of FX Strategy / Saxo Bank
Denmark
US dollar notes
 The US dollar gained on stronger-than-expected ADP 
payrolls data. Image: Shutterstock

By John J Hardy

Key developments in FX today

(See the Notes of Interest in today's FX Board PDF attached to this post.)

  • The US dollar strengthened broadly after a massive upside surprise on the ADP payrolls data from February.

  • If the USD rally is really to extend, we need to see it through the 115.00 level in USDJPY after Friday's US payrolls data and then for EURUSD to break below 1.0500 after tomorrow's European Central Bank meeting and hold below there to the end of the week.

  • Sterling is trying to turn the corner and rally after the announcement of the UK budget today, though it's too early to draw any conclusion.

  • Note that AUDUSD has descended close to the key pivot zone into 0.7500-50, with the 200-day moving average near the middle of that zone as well.


— Edited by John Acher


 John J Hardy is head of FX strategy at Saxo Bank
Download document

FX Board for Wednesday, March 8, 2017

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