- September 6, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar is steady today as traders still face concerns of global trade tensions and emerging market turmoil. Today is the deadline for public input on $200B in tariffs against Chinese imports. Trump is looking ahead to the midterm elections, and imposing more tariffs on China may be a political tool to appease his supporters. NAFTA talks continue and both sides appear to be optimistic that a new deal can be reached. Trump mentioned that there may be progress over the next few days, and Freeland has maintained her position that they are working hard to strike a new deal with work being put in by both sides. The BoC held rates yesterday as expected, citing global trade tensions remain a key risk for the economy, CPI is firmly around 2%, the economy is still developing in line with July forecasts and indicating that higher rates will be warranted.
EUR slipped again as USD remains the preferred vehicle for investors. Sterling saw some gains yesterday after reports that both the UK and German governments have abandoned key Brexit demands.
The calendar is quiet today with US ISM Non-Manufacturing/Services Composite (56.9 vs 56.5) set for release at 10:00am. Friday will have dual jobs numbers for Canada and the US, as well as British inflation data. The Short term support and resistance is 1.3105 and 1.3235 respectively, with RSI at 58 and the 200-day moving average residing at 1.2854.