- April 20, 2018
- Posted by: Joey Benedid
- Category: Market News
To cap off a relatively quiet week for the markets is Canadian CPI YoY (2.4% vs 2.2%) as the only primary economic release on the docket today, with Canadian Retail Sales (0.5% vs 0.3%) filling out the calendar for secondary releases. Trump weighed in on yesterday’s OPEC meetings in Saudi Arabia stating that the organization is keeping oil prices artificially high and that the US and the rest of the world would not accept these practices. OPEC met yesterday to continue discussions regarding extending the current supply cuts. Oil prices fell to $67/barrel as a result. Trade concerns with China have also crept back into the mix, with China’s ambassador to the US indicating that if the White House continues to promote a Trade War, the Chinese would retaliate accordingly. Sterling took an unexpected hit this morning after the BoE was more dovish than expected, resulting in doubts of a May rate hike in England. The Euro is also soft on ongoing concerns over the ECB maintaining a holding pattern before tightening monetary policy after seeing weak numbers out of Germany and Spain this week.
With yesterday’s USD rally, support and resistance have moved to 1.2611 and 1.2702 respectively, with RSI at a neutral 47 and 200-day Moving Average ticking up to 1.2627.