|Day's Range||0.761 - 0.762|
|52 Week Range||0.7284 - 0.7699|
The Canadian dollar has settled down on Friday, after considerable gains on Thursday. The British pound is steady, ahead of a possibly historic vote over Brexit on Saturday. The Mexican peso continues to trade at a 10-week high against the greenback.
While China’s economy slowed in the 3rd quarter, things could have been much worse. Relief all round as focus now shifts to Brexit…
Recent rotation in multiple foreign currencies hints at the fact that a new stage of the “Capital Shift” process is taking place and that skilled technical investors need to pay very close attention to how these currencies continue to react over the next 3 to 6+ months. In the recent past, most of the world’s foreign currencies were declining in value while the US Dollar continued to strengthen. In fact, we authored many research articles about these trends and how weakness in foreign currencies will drive new foreign investment into the US stock markets for two simple reasons; strength and security.
The Dollar found strong support early, as the markets considered the implications on existing tariffs on the economic outlook. Brexit chatter also weighed.
While economic data will bring the EUR, GBP, and USD into focus, a resumption of U.S – China trade talks is the main event of the day.
A light economic calendar leaves geopolitics and U.S – China trade talks in focus in particular. Expect negative news to weigh heavily on risk sentiment.
The pound continues to lose ground on Tuesday and has fallen close to the 1.22 line. The Canadian and British currencies are showing little movement.
With economic data on the lighter side once more, we expect geopolitics to continue to drive the majors. Does China have the upper ahead of talks?
While we can expect German factory orders to influence the EUR, geopolitics will be a key driver. Brexit and trade will be in focus throughout the day…
The Greenback is back in focus, with nonfarm payrolls and wage growth due out this afternoon. Another weak set of numbers will fully test risk sentiment.
With sentiment towards the global economy deteriorating, today’s service sector PMIs need to hold up for the markets to avoid a meltdown…
Based on the early price action and the current price at 98.890, the direction of the December U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to the pivot at 99.005.
The RBA cut rates by 25 basis points ahead of a busy economic calendar today. The EUR, GBP, Greenback, and the Loonie are all in action today.
The U.S. Dollar is also be supported by the divided Fed and several key Federal Open Market Committee (FOMC) members who suggested last week that the central bank may have to hit the pause button on an additional rate cut at the end of October.
It’s a hectic day ahead. Economic data out of China delivering mixed results, as the focus shifts to the EUR, Brexit, trade and U.S politics.