The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
The Bloomberg Dollar Spot Index extended its Asia session gain with investors continuing to unwind their short dollar exposure across the board as the gauge rebounded from its lowest level since January 2015.
The greenback’s relief rally saw the euro slide a second day, set for its first two-day decline in two weeks. Euro-dollar was 0.2 percent lower at $1.1953 as of 10:39 am in London. The euro dropped as longs were stopped out and interest to fade the dip lies lower than current levels, according to Europe-based traders.
Investors turned their focus to the Jackson Hole breakout level at $1.1910, which also held on various attempts to break lower. A daily close below here might prompt further profit-taking from longs, as analysts suggest there’s a high chance that European Central Bank President Mario Draghi will try to put a lid on the currency at the ECB’s meeting on September 7.
Euro demand extends all the way to $1.1880, said the traders, who asked not to be identified as they weren’t authorised to speak publicly. The volatility skew pointed toward further dollar losses as option traders stay unfazed by the latest spot move.
Data from the Depository Trust & Clearing Corporation showed demand for euro calls remained strong, yet puts expiring in September gained traction.