- November 28, 2018
- Posted by: Joey Benedid
- Category: Market News
Yesterday’s Fedspeak remained neutral to mildly dovish but was outweighed by U.S. Presidential comments stating more tariffs on China could come if talks between the two countries do not go well from a U.S. perspective. This resulted in a stronger U.S. dollar and a move towards risk aversion with moderately lower equities. Overnight action has been tepid with equities either side of neutral and the dollar relatively unchanged. U.S. GDP just came out at 3.5% vs. an expected gain of 3.6%, and the market has collectively yawned.
USD/CAD is following general market sentiment and has nearly hit the 75 cent level in overnight trading. That point, which is 1.3333, will act as initial resistance with the June high of 1.3352 behind but month end equity portfolio rebalancing flows are expected to see further USD purchasing as the week continues. Support now resides at 1.3275 with trend line support below at 1.3208.