Today’s news cycle is providing a reprieve from yesterday’s pressure and U.S. equity markets are responded thus far. U.S. benchmarks traded lower into the bell and although the S&P 500 and Russell 2000 secured outside bearish daily settlements, both the S&P 500 and Nasdaq failed to close below our major three-star support, which would have signaled further immediate downside.
The U.S. dollar has been stuck trading in a narrow range for several weeks now after a significant correction since the start of 2017 came to a halt. Market participants have been considering whether the greenback has depreciated more than it should have given the still-positive fundamental backdrop.
The last trading day of the week is drawing to a close and after huffing and puffing all week the dollar fell further in response to the latest US economic data.
