|Day's Range||1.337 - 1.343|
|52 Week Range||1.2787 - 1.3728|
The euro was lower against the U.S. dollar on Tuesday, as U.S. President Donald Trump continued to put pressure on the Federal Reserve to ease rates by criticizing the European Central Bank. Trump slammed ECB President Mario Draghi, who earlier in the day hinted at more stimulus money and rate cuts in the if the eurozone economy does not improve. The president has been urging the Fed to cut rates, which have risen from 0% to 2.5% in the last three years.
The escalating US-China and US-Iran tensions kept adding considerable downward pressure on the Oil prices. Street analysts hope a 1.6% drop in the April CAD Manufacturing Shipments data.
The RBA talks of further rate cuts as the UK Tory Party Leadership race heats up. Stats out of the Eurozone will also be relevant later this morning.
The USD Index started losing shine after the release of the June NY Empire State Manufacturing Index. Cable remained fragile throughout the day as Britishers continued to fear over a Hard Brexit.
Based on the current price at 97.020, the direction of the September U.S. Dollar Index into the close is likely to be determined by trader reaction to the Fibonacci level at 97.020.
The whole of last week was positive for USD and negative for oil. Why is it important here? The reason for this is that the price of oil is very influential for the Canadian dollar.
The U.S. dollar fell on Monday after manufacturing activity in the New York area fell to a two-and-a-half year low in June, while other currencies remained quite ahead of a flurry of central bank meetings. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% to 96.935 by 11:25 AM ET (15:25 GMT). Data on Monday showed that manufacturing activity in the New York region posted a record drop in June, as economic activity in the area contracts.
Ahead of the day, the Greenback might show some good upward movements making the Index touching the 2/1 Gann fan. Oil prices dropped after the statement of US Secretary of State Mike Pompeo.
Crude prices slipped 3.2% last night as demand appeared to fade. Yesterday, more than 600 US Companies wrote a letter to President Trump requesting to resolve the trade dispute with China.
It’s a litmus test for the U.S economy today. Retail sales and consumer sentiment figures will give the FED an idea of how consumers really feel.
Oil prices rose around 3.8% in the early hours as two Saudi Oilers got attacked in the Gulf of Oman. Cable down as Brexit Hardliner Boris won the first ballot. Weak Jobless Claims strengthened rate cut hopes.
The U.S. dollar was slightly higher on Thursday as traders increased expectations that the Federal Reserve will cut interest rates in the coming months. Consumer inflation data on Wednesday helped support the case for a cut, as it slipped from the Fed's 2% target. Traders have been speculating on the possibility of the central bank changing its course on monetary policy due to slowing inflation and rising trade tensions.
The Greenback is on the back foot early as the Asian markets respond to softer inflation out of the U.S. Australian employment figures failed to impress this morning.
ECB President Mario Draghi commented today that the Central and Eastern Europe remains vulnerable to the trade war headwinds. Weak EIA Crude data resulted in a decline of Oil prices.
The U.S. dollar pared back earlier gains after tame inflation data supported the case for the Federal Reserve to cut interest rates. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.05% to 96.690 by 10:15 AM ET (14:15 GMT), after reaching an earlier high of 96.757. Consumer inflation edged up 0.1% in May and was up 1.8% on the year, slipping from the Federal Reserve's 2% target.
Technical analysis gives us some hints, that this movement should be continued, at least on the Dollar Index and the EURUSD but do we have the same situation on other pairs with the USD?
Crude slipped last night over weaker oil demand outlook and increased US Crude Stockpiles. Ahead of the day, the market eye the US May Inflation data, which remains highly crucial.
The U.S. dollar was flat on Tuesday, after the Federal Reserve came in for another barrage of criticism from President Donald Trump for allegedly keeping interest rates too high. In contrast to the Fed, the European Central Bank has been explicit about being ready to cut interest rates and, if need be, resume its bond-buying program to support the economy. The messsage articulated last week by President Mario Draghi was repeated Tuesday by both Bank of Finland Governor Olli Rehn and his Slovak counterpart Peter Kazimir.
OPEC members, including Russia, continued to maintain supply cuts to provide support to the subdued Crude prices. The technicals on USD/CAD suggesting strong downtrend with less possibility of reversal.
Positive update on the US-Mexico trade front sets market mood elevating crude prices to $54.50 bbl marks. Technical Indicators signal an overall bearish trend for the pair.
U.S nonfarm payrolls and wage growth will be the main event of the day. Outside of the stats, will be there any trade chatter to rile the markets?