- September 21, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar is up early this morning after seeing the Dollar Index fall to lows we haven’t seen since July 9th of this year. The recovery coming after investors were seemingly shrugging off the escalating trade war between the US and China. USDCAD is trading sideways today as Canadian CPI met expectations of 2.8% growth – down 0.2% form last month. Canadian retail sales also came in on target, rising 0.3% in July. Trader’s will now be eyeing next week’s FOMC rate decision to see if there is a change of tone from Powell and co. The markets are pricing in a 93.2% chance of a hike for Wednesday, and economists are calling for a subsequent hike for 2018 and four more in 2019.
EUR was up during the overnight session as EURUSD was flirting with the 1.1800 levels, only to see USD strengthen this morning a claw back some of the losses on EUR. A number of secondary and tertiary data points were released out of the Eurozone this morning, including misses in German and Eurozone PMI. Soft data and a bit of a rebound on the Dollar Index can account for the EUR slide this morning. GBP took a significant hit after Theresa May’s blueprint for a Brexit strategy was bluntly rejected by EU counterparts. May’s hard stance on refusing to make concessions to the bloc appear to be why such a harsh response was issued. European Council President Tusk has put everyone on notice, warning of a moment of truth at next month’s EU Summit, which may reveal the fate of Britain’s exit.
Short term support and resistance is 1.2826 and 1.2952 respectively, with RSI down at 46 and the 200-day moving average residing at 1.2865.