- July 9, 2018
- Posted by: Joey Benedid
- Category: Market News
As we move into life after tariffs, markets seemed to shrug off any drastic immediate impacts that some analysts were fearing right out of the gate. On Friday the US imposed tariffs on China equaling $34B and China retaliated accordingly imposing its own tariffs. The Dollar continued its slide from the later part of last week after we saw lower wage data out of the US. Job creation numbers looked good with Non-Farms exceeding expectations, however the wage growth figures prevented any gains. The BoC will have a rate decision on Wednesday which is currently being priced at an 87.9% chance for a 25bps hike.
EUR is up slightly after positive German export data rose in May, indicating that the largest contributor to the Eurozone economy is still producing despite global trade concerns. Sterling also saw gains this morning following lows from the overnight session. GBP fell after Brexit Secretary David Davis and his deputy stepped down in protest to May’s plans for a soft Brexit. This after May appeared to lose the support of her Cabinet before heading into a Summit on Friday. A replacement has already been named for Davis and tumultuous Brexit news has been par for the course as of late, resulting in rather muted loses on the pound and its rebound this morning.
A rather quiet day to start the week, Tuesday picks up with UK GDP estimates, German and Euro economic sentiment numbers. Draghi and Carney will speak on Wednesday, with the BoC Rate Decision at 10:00am. Thursday and Friday will have the US take over the calendar with CPI, U. of Michigan Sentiment and the Fed’s Monetary Policy Report. Short term support and resistance is 1.3035 and 1.3160 respectively, with RSI at 56 and the 200-day moving average residing at 1.2767.