- August 23, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar is broadly higher after the Fed Minutes indicated that further interest hikes were still on the horizon – with a 92.3% chance of a hike in September and forecasts for another hike in December. The boost in the Dollar was spurred by the Fed stating that they continue to expect the US economy to expand at an above-trend pace. As the US and China continue their trade talks, many believe that without senior policy makers in attendance, this is simply a vehicle for a joint statement highlighting progress in trade talks. Both nations implemented additional tariffs on $16B worth of each other’s goods and as a result China will be submitting a formal complaint with the WTO over tariffs that America has imposed. The Loonie made gains yesterday following discussions between the US and Mexico regarding a NAFTA agreement. While Canada was not involved in discussions, the markets saw a CAD and Peso rally as traders were starting to bet that a NAFTA agreement could be struck sooner rather than later. USD has since pulled back losses and is trading higher against both in today’s session.
EUR is lower against a stronger Dollar but eurozone data did show private sector activity continues to grow, albeit at a slower rate than anticipated. The Pound continues to limp along as a no-deal Brexit remain in focus.
Short term support and resistance is 1.2950 and 1.3188 respectively, with RSI at 53 and the 200-day moving average residing at 1.2839.