|Day's Range||96.70 - 96.83|
|52 Week Range||96.33 - 98.67|
Judging from the way the dollar index is weighted, the best bet for another surge to the upside will be a weaker Euro, Japanese Yen and British Pound.
Last week’s price action in the Treasury markets, the U.S. equity markets and the U.S. Dollar strongly suggest that those calling for a top in the U.S. economy based on the headline inflation number, the weak retail sales report and the drop in industrial production, have wrongly determined that the U.S. economy has topped.
Trade talks delivered strong gains across the European and U.S equity markets last week. What’s on the horizon for the DAX and EUR?
Theresa May’s troubles continue to pin back the Pound and the stats have provided little help. More swings on the cards later today.
Brexit and Trade talks are on the political agenda, while Germany’s GDP numbers and retail sales figures out of the U.S will be in focus on the data front.
Recent inflation data in the UK put pressure on the pound. GBPUSD has turned to decline from 1.29 after the release of disappointing inflation data for January.
Will inflation numbers deliver a boost for the Pound or the Dollar, or will they ease pressure on the respective central banks to make a move?
Avoiding another government shutdown should be positive for stocks and negative for the U.S. Dollar. The news would be a positive for U.S. economic growth which should underpin stock prices. During the recent 35-day partial closure, U.S. industry suffered losses, especially the airlines sector. U.S. GDP growth was also negatively affected. The dollar could weaken because hedgers would be encouraged to reduce some of their safe-haven positions.
The USD demand came back at the start of trade in London: the EURUSD pair has dropped to the lowest mark of the trading spectrum since November returning to 1.1300.
Economic data out of the UK and Brexit chatter keeps the Pound in focus. Across the pond, expect chatter from Capitol Hill to also influence in the day.
A series of events throughout the week helped drive the dollar even higher, but for different reasons. This time, it wasn’t higher yields driving the greenback higher, but rather safe-haven buying related to growing concerns over the weakening global economy and renewed concerns over U.S.-China relations which drove down appetite for higher risk assets.
The economic calendar for the current week remained relatively quiet with a couple of monetary policy decisions from Reserve Bank of Australia and Bank of England.
The US dollar is rising, having updated this year highs since the beginning of the year at USDX on the demand growth for safe assets.
It’s risk off through the early part of the day, weighed by central bank economic forecast revisions. Trade data out of Germany is in focus today.
Despite the fact that the report on the US labour market did not cause a powerful wave of dollar purchases, it still spawned a trend to strengthen against most currencies. As we wrote after the release of labour market statistics, the US economy is not slowing as much as other regions of the world.
Gold trades range bound as strong dollar limits gains while high safe-haven demand keeps it above $1300 handle.
Brexit and the BoE will be in focus today. Will growth forecasts be revised downwards? The Pound could be in for a choppy day.
The head of the Reserve Bank of Australia provoked the Australian currency selloff on Wednesday morning. AUDUSD loses 1.6% after Philip Low’s comments on the Central Bank readiness to consider rate cuts.
The Aussie Dollar took an early hit on dovish commentary from RBA Governor Lowe. Trump failed to rattle the markets in his State of the Union speech, leaving economic data and Brexit chatter in focus through the day.
The RBA holds back from any talk of a rate cut to drive the Aussie Dollar back into the green. For the day ahead, Trump will be the main area of focus.
Ahead of the report, some analysts said the partial government shutdown may have distorted some of the figures. However, a Bureau of Labor Statistics official estimated that the shutdown had “no discernable impacts” on the ability to make estimates, though there was some effect on the numbers otherwise. The news triggered a mixed response in the stock market, but Treasury yields soared. This helped make the U.S. Dollar a more-desirable investment, while pressuring dollar-denominated commodities like gold.
Only if the Gold prices manage to post a weekly closing beyond $1306-08 resistance-region, it can confront $1338 TL barrier, else overbought RSI may play its role in dragging the quote to $1300 and then to the $1288 rest-points. In case prices continue trading downwards past-$1288, the $1275 and the $1266 are likely following numbers to appear on the chart. If at all the yellow metal cross the $1308 mark and rise above $1338, it’s rally to $1360 and then to the $1367 can’t be denied. ...
China’s manufacturing sector weakened further to test risk appetite ahead of January’s nonfarm payroll and wage growth figures out of the U.S.