- July 10, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar has rebounded during the overnight session as concerns regarding the immediate escalation of a trade war between the US and China has eased somewhat. After imposing this round of tariffs, Trump now turns his attention to NATO as he embarks on his upcoming European adventure. Trump will stop in Brussels to speak with NATO members about increasing their defense budgets, targeting Germany specifically. The President will then move on to London to meet with Prime Minister May and then Helsinki for the US-Russia summit with Putin. The BoC will hold a rate decision tomorrow, in which a 94.1% probability of a 25bps hike is currently priced into the market. Investors will be looking for a hawkish tone to carry over from recent Poloz comments.
EUR saw losses this morning after German and Eurozone economic sentiment numbers came in lower than expected. This just a day after Germany posted stronger than expected export data, helping Euro make up ground on other majors. Sterling continues to surprise investors as it edges higher despite resignations from two major political actors yesterday in David Davis and Boris Johnson. UK GDP estimates met expectations this morning, helping sustain gains for the pound. Despite political turmoil, the BoE is still discussing a potential rate hike for its meeting in August.
Short term support and resistance is 1.3065 and 1.3160 respectively, with further resistance at 1.3225. RSI is at 58 while the 200-day moving average resides at 1.2770