- August 31, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar was lower during the overnight session as US-China trade tensions were escalated again after it was announced that Trump wants to moved ahead with the plan to impose $200B worth of tariffs on Chinese goods. The Dollar subsequently got a boost this morning as we entered the North American session when a Canadian government official said to doubt this NAFTA deal today. This after a multi-day rally from CAD and MXN on perceived progress of a new deal. Traders will look to see if a deal in principle can be reached today to smooth out any trade tension concerns between the North American counterparts.
The weaker Dollar earlier this morning helped push the EUR higher, however with Eurozone CPI missing expectations by 0.1%, EUR has lost some momentum. GBP remains steady as a meeting scheduled between the EU’s Chief Brexit negotiator and British Brexit Secretary is slated for later today. There is some optimism surrounding the Pound, mostly supported by yesterday’s comments from EU negotiators indicating that Britain could have a very close relationship with the EU after they exit.
Short term support and resistance is 1.2867 and 1.3121 respectively, with RSI at 53 and the 200-day moving average residing at 1.2845.