- July 26, 2018
- Posted by: Joey Benedid
- Category: Market News
After meeting with European Commissioner Juncker yesterday, Trump has backed off on threats to impose tariffs on the European auto industry. In return, Juncker agreed that Europe would import more soybeans from the US. The Dollar Index was trading near multi-week lows, and the agreement with the EU has helped curb further drops. The Canadian Foreign Affairs Minister was in Mexico speaking with the incoming and outgoing administrations to help bolster NAFTA talks and stated that she was hopeful NAFTA talks could move to the forefront now.
EUR is quiet heading into the ECB rate decision this morning. While expectations are that rates will go unchanged, investors are looking to see if there is a change of plans in terms of winding up its stimulus program or forecasts of a rate hike. Rates are expected to be held until mid 2019. Sterling is soft this morning with little news to trade on for the rest of the week. Brexit concerns are still fueling concerns for the Pound.
The ECB Rate Decision is set to be announced at 8:30am EST, where the expectation is that rates will remain unchanged – Draghi will speak following the announcement. US Jobless Claims (215k vs 207k) and Durable Goods Orders (3.0% vs -0.4%) are also schedule for release this morning. We’ll end the week with US GDP (4.2% vs 2.0%) tomorrow morning. Short term support and resistance is 1.3000 and 1.3135 respectively, with RSI at 54 and the 200-day moving average residing at 1.2810.