- January 31, 2018
- Posted by: Joey Benedid
- Category: Market News
The dollar index is pushing lower after the President’s State of The Union Address did little to give any concrete direction for the U.S. economy and focused more on what he believes was personally accomplished and the U.S. immigration policy. U.S. dollar month end selling remains prevalent with EUR/USD looking to test 1.2500 and GBP/USD trading above 1.4200 earlier in Europe despite a leaked Brexit report concluding the UK economy will suffer on their EU exit.
USD/CAD traded to support near 1.2280 as month end flows continue to favor CAD. With no mention of the U.S. exiting NAFTA in the State of The Union Address last night the Canadian dollar has curried favor with short term traders looking to take advantage of these one-off flows. Technicals for the USD are firmly in oversold territory so after the UK goes home we may see some relief for the beleaguered greenback.