- May 29, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar Index did not skip a beat coming back from the US long weekend as it traded as high as 95.03, the highest levels we’ve seen since November of last year. This is primarily due to EUR weakness following the ongoing political concerns within the Eurozone. It appears now that the US-North Korean Summit is back on. Trump had indicated on Sunday that a US team was heading to North Korea to negotiate, and now North Korea has sent a top aide to Washington. Trump will also be meeting with Japanese Prime Minister Abe prior to his summit with North Korea. Political turbulence continues in the Eurozone. EUR had initially spiked on Monday following Italy’s President vetoing the nomination of a euro sceptic finance minister. The populist parties abandoned their coalition government and now Italy is set to go to the polls later this year, sending EUR down. Spain may also be heading to the polls following a vote on no-confidence of Prime Minister Rajoy following a corruption case. GBP is mixed with no significant data released today and ongoing Brexit concerns. The BoC has a rate decision tomorrow, where it is expected that they will hold rates as is. Oil prices and ongoing NAFTA negotiations continue to be the main focus for CAD.
Today we’ll see US Consumer Confidence Index (128.0 vs 128.7) as the only main release for the day. Short term support and resistance is 1.2950 and 1.3100, with RSI inching up to 58 and the 200-day moving average residing at 1.2656.