- June 6, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar is down this morning following hawkish comments from the ECB and Treasury Secretary Mnuchin’s comments to Trump urging that the US drop tariffs on Canadian products. The Dollar is coming back down after a very strong couple of days which was highlighted by last Friday’s employment data, leading to sustained belief that the Fed will hike this month and the investor feeling that the possibility for a fourth hike for 2018 is back on the table. Tensions are easing in ongoing US-China trade talks as both countries aim to strike a deal before their deadline later in the month. EUR is seeing gains as the ECB Chief Economist said that officials are increasingly confident that inflation is moving up towards the central bank’s targets and will begin debating next week whether or not to begin slowly easing its asset purchase program. Sterling is also up this morning on services data indicating that the UK economy is slowly recovering from its recent economic slowdown, leading some to believe that the BoE could consider hiking rates later this summer again.
Primary economic releases will make an appearance on Friday with CAN employment numbers rounding out the week. Short term support and resistance is at 1.2860 and 1.2950, with RSI at a neutral 50 and the 200-day moving average residing at 1.2669.