- July 12, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar rebounded yesterday after taking a hit following the BoC Rate Decision where Poloz and co. announced a 25bps hike. After the BoC, investors set their sights to US data set for release Thursday and Friday. US CPI met expectations helping buoy the Dollar near the high of yesterday’s trading session. The U. of Michigan Sentiment report is slated for release tomorrow morning to round out the week. During Poloz’s speech yesterday he maintained his stance from previous comments, indicating that the economy is near capacity and that future rate hikes will be gradual and data driven. Global trade concerns are lowering the loonie at this point, but the BoC feels that investments and exports can drive growth.
EUR lacked any sort of momentum after German inflation rates slowed in June. GBP is soft as parliamentary disunity still weighs heavy on the currency. Carney and the BoE are still looking at a possible rate hike over the course of the next couple of months.
Short term support and resistance is 1.3050 and 1.3280 respectively, with RSI at 59 and the 200-day moving average residing at 1.2778.