FX Update: The dollar has been trading on a firmer footing
FX Update: The dollar has been trading on a firmer footing today. The narrow trade-weighted USD (DXY) logged a three-session high earlier, at 89.27, since settling around 89.15, and EUR-USD posted a three-session low at 1.2387 before settling in the low 1.24s. USD-JPY extended its rebound from Friday's 15-month low at 105.52, posting a high at 106.65. Trading volumes have been low with a number of Asian nations enjoying public holidays today, in addition to the U.S. and Canada. How much long the dollar will enjoy this respite, having been trending lower for over a year now, has been a question in circulation analyst notes today. Most seem to remain bearish of the dollar, despite revitalized Fed tightening expectations, on the view that strong global growth and a risk-on sentiment will continue, and thereby continue to attract capital away from the dollar.