- August 17, 2018
- Posted by: Joey Benedid
- Category: Market News
After a quiet week on the sidelines, the Canadian Dollar made news this morning with a better than expected CPI release beating expectations by 0.5%. CAD clawed back 70pts this morning against the dollar following the positive news. With no major US data today, the Dollar is quiet leaving it susceptible to CAD strength. The pair continues to trade within range as we’ve seen a relatively quiet week from an economic release standpoint. Geopolitical and trade risk continue to highlight direction for the Dollar.
EUR is slowly rebounding against the quiet Dollar as data shows that foreign direct investment in the Eurozone is picking up, leading to support on mixed data. GBP in neutral as struggles continue to pin the Pound down with Brexit negotiations front and center.
Next week will also be quiet on the calendar with the FOMC Meeting Minutes on Wednesday and Durable Goods Orders (1.0% vs 0.8%) on Friday. Short term support and resistance is 1.2950 and 1.3188 respectively, with RSI at 55 and the 200-day moving average residing at 1.2832.