Overview:The US dollar is trading with a softer bias. Among the G10- currencies, only the euro and Swiss franc are the laggards and are nearly flat. In shifting expectations, the market sees the Reserve Bank of Australia as the most likely to hike rates again, while the swaps market appears to be bringing forward cuts by the European Central Bank and the Bank of Canada. The Australian dollar is the strongest G10 currency today and this week.
She just did not change market psychology and of give reason for investors to alter their negative outlook for the eurozone. The euro bounced from about $1.0525 to around $1.0565 on position adjustment after the US CPI. The price action may have formed a bullish hammer candlestick pattern. It is in a roughly $1.0550-70 range today. Still, the euro lookspinnedbetween two large option expirations today.There are 1.25 bln euros in options struck at $1.06 and another set for 1.3 bln euros at $1.05.