Morning Commentary & Currency Insights – May 11, 2018

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When one door closes, another opens. Trump walked away from the Iranian deal earlier this week, helping oil climb to multi year highs. He has now agreed to a summit with North Korea in Singapore next month, which has been a task that has alluded the US for decades. Investors will be watching as they look for clarity on geopolitical issues moving forward. With oil still trading at multi year highs, the Canadian dollar is still showing some strength against USD. As the crosspair continues to trade sideways, the market will weigh data and political developments as an indication to test current technical levels.

Canadian Net Change in Employment (20.5k vs 32.3k) and Unemployment Rate (5.8% vs 5.8%) highlight the North American calendar today, with US U. of Michigan Sentiment (98.4 vs 98.8) rounding out the day. Short term support and resistance is at 1.2750 and 1.2900 respectively, with RSI dropping slightly to 50.

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