- June 29, 2018
- Posted by: Joey Benedid
- Category: Market News
As we look forward to the long weekend ahead, the Dollar Index slumps into Friday, down 0.46%. After US GDP missed expectations yesterday, US PCE Core looks to redeem the dollar after falling from highs earlier in the week we haven’t seen since last June. In Poloz’s speech earlier in the week, he mentioned that inflation was on target and the domestic economy was performing well. Investor’s interpreted this as a hawkish tone from the BoC and will be eyeing CAN GDP (2.5% vs 2.9%) this morning to see if the data matches the comments.
Talks in Brussels over the immigration issue in the EU resulted in a plan that will share the logistical burden of handling new immigrants throughout the EU. The deal helped the EUR trade higher against USD during the overnight session, however still trading lower on the week. German Unemployment Change came in better than expected and Eurozone CPI came in on target also boosting EUR as we head into the North American session. Sterling is also trading higher as British GDP for G1 showed 0.2% growth compared to the 0.1% expectations.
Short term support and resistance is 1.3200 and 1.3386, with RSI at 63 and the 200-day moving average at 1.2746.