- June 19, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar Index is up 0.56% to 95.29 as we reach highs we haven’t seen since early November. The Dollar broke out overnight after Trump ordered the identification of $200B in Chinese imports to assign a 10% tariff, while threatening to apply a tariff on an additional $200B in Chinese imports if Beijing chooses to retaliates. China has stated that they will not back down from American demands, fueling ongoing concerns of an all out trade war. WTI is down trading at 64.84/barrel as the market continues to assess the OPEC discussions regarding compromised oil production increase. EUR is lower against the Dollar as investors are turning focus on the three-day ECB forum in Portugal, where Draghi and Chief Economist Praet will speak later today. GBP is down as Theresa May’s Brexit Bill was defeated in the upper house, sending it back down to the lower house again. With time running out to iron out a Brexit plan, pressure is starting to build and every defeat is pushing closer to a no-deal hard Brexit.
A quiet day for economic releases is highlighted by the ECB Forum in Portugal. Short term support and resistance is 1.3156 and 1.3348 respectively, with RSI at 65 and the 200-day moving average residing at 1.2705.