|Day's Range||0.758 - 0.76|
|52 Week Range||0.7284 - 0.7821|
Based on the early price action, the direction of the September U.S. Dollar Index on Tuesday is likely to be determined by trader reaction to Monday’s close at 95.487. If the Euro posts a reversal top then look for the index to post a reversal bottom.
Ahead of the day, Fed Chair Powell Speech and Consumer Confidence Index are must-watch events. On a broader technical view, the pair appeared to maintain a healthy uptrend.
Negative comments ahead of trade talks and rhetoric from Iran in response to the prospect of sanctions dampen the mood ahead of the European open.
Trump called the Fed as a “Stubborn Child”. Today, the Crude prices slipped around 1% over demand concerns boiled out of escalating US-Iran tensions. The April Japanese Leading Economic Index reported higher than market hopes.
US Secretary of State Mike Pompeo said “significant” sanctions would be imposed on Iran today. Chances of any trend reversal in the near-term stay low as the RSI moves, replicating the pair’s movements.
It’s a mixed start to the day as the markets look to gauge what’s next for Iran. Any retaliation to new sanctions will need to be looked out for…
Wednesday’s Fed rate cut hints on “an accommodative” stance continued to weigh over the Index. German June Markit Manufacturing PMI reported above estimates. The USD/CAD pair was showing some slight recovery movements throughout the day.
The Oil prices continued to hold on the monthly gains lingering near $57.75 bbl amid the rising Middle East tensions and hopes over a Fed rate cut. On the longer timescale, the pair appeared to maintain a downtrend clinching near the 4-month bottom.
The Fed has decided to keep the interest rates unchanged at 2.5% for the time being. Up next in the US economic docket are the June Continuing and Initial Jobless Claims figures.
Will the BoE continue to talk of the need to hike rates at an aggressive pace or has the economic data and shift in policy elsewhere caused a reevaluation…
The German PPI reported -0.1% over 0.2% forecast, lowering investor interest. Following some astounding reports, the GBP/USD pair skyrocketed 0.73% touching 1.2636 marks.
The Crude prices had soared more than 5% yesterday, shooting from $51.75 bbl reaching $54.44 bbl. Trump plans to fire the Fed Chief, depending upon today’s Monetary statements.
It’s all eyes on the FED later in the day as the Asian markets respond to news of Trump and Xi’s planned G20 Summit meeting.
The RBA policymakers mentioned that the Bank would opt for reducing the interest rates again. German ZEW Survey June Economic Sentiment data shocked market reporting -21.1 points.
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.
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.