- September 12, 2018
- Posted by: Joey Benedid
- Category: Market News
The Dollar Index has rebounded from yesterday’s slump as trade concerns crept back into the picture, leading trader’s to return back to their safe-haven comfort zones. Trump announced last week that tariffs totaling as much as $267B could be levied against China. China is looking to get permission from the World Trade Organization to impose sanctions on the US for non-compliance in a dispute over US dumping duties. The Canadian Dollar made some headway this week as Canadian negotiators are willing to make a concession to the US to resolve outstanding NAFTA issues and strike a new deal. The concession is allegedly limited access to the Canadian dairy market. The Canadian dairy market has been a major talking point during these negotiations, and with the Oct 1st deadline looming Freeland and co. will be heading to Washington to continue discussions with the US.
EUR edged lower this morning, mainly on USD strength. The ECB will hold a rate decision tomorrow, where expectations are that they hold rates and traders are still anticipating that rates will not change until late 2019. Sterling fell as well this morning as a group of around 50 lawmakers allegedly met to discuss how and when they could push May out of office due to the ongoing Brexit negotiations that have been nothing short of tumultuous.
The calendar is quiet today, but tomorrow will show a BoE and ECB rate decision as well as US CPI, while Friday will have a speech from the BoE’s Carney and US Retail Sales. Short term support and resistance is 1.3105 and 1.3235 respectively, with RSI at 53 and the 200-day moving average residing at 1.2861.