- April 24, 2018
- Posted by: Joey Benedid
- Category: Market News
After a quiet night in the markets, USD continues to outperform many of its counterparts despite slight retracements in most G7 currency pairs. As the yield on 10-year US Treasuries notes hit its highest level in over four years at 2.998%, it remained below the key threshold of 3% which investors see as the pivot point where the value for fixed income assets would start to outperform equities. Strengthening inflation has also added to expectations for prompt action of monetary tightening from the FED. Yen has softened over the past few trading sessions as geopolitical tensions have eased leading to investors divesting from the traditional safe haven currency. Euro is still recovering from weak numbers out the of Eurozone, and Sterling is softer on weak wage growth and inflation data coupled with uncertain Brexit negotiations. ECB and BOJ highlight the week with rate decisions on Thursday and Friday respectively. US Consumer Confidence (126 vs 127.7) leads the way today at 8:30am EST on what is a relatively quiet calendar.
CAD has clawed back slightly against the Dollar, but there are still key economic concerns reiterated by Poloz yesterday causing doubt on a potential July rate hike by the BoC. Short term support and resistance for USD/CAD is 1.1.2780 and 1.2880, with RSI at a neutral 53 and the 200-day Moving Average inching up to 1.2624.