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US dollar holds near 50-day EMA versus Canadian dollar and Swiss franc
The dollar is also bouncing around against the Mexican peso near the 17.50 level, while the piece notes the US-Mexico interest rate differential favors the peso.
Yahoo Finance’s Christopher Lewis said the US dollar is defending its 50-day exponential moving average, with USD/CAD sitting just above the 50-day EMA near 1.40 after easing from July highs.
He characterized the move as a technical bounce that sits just above the 38.2% Fibonacci retracement level, arguing that a shallow retracement is often viewed as bullish by technical traders, while adding that outside drivers like oil can still matter.
Lewis said the dollar first fell against the Swiss franc before turning higher, with the market described as consolidating and showing no massive moves despite weekend chaos.
On USD/MXN, he said price is hovering and treating 17.50 as a magnet for traders, and he pointed to the interest rate differential as favoring the Mexican peso, while expecting continued choppy trading as participants await the next catalyst.