|Day's range||1.317 - 1.319|
|52-week range||1.2787 - 1.3728|
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 U.S. dollar fell to a three-month low on Thursday after the Federal Reserve indicated that it was prepared to cut interest rates this year. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.4% to 96.180 by 10:27 AM ET (14:27 GMT). Federal Reserve policymakers signaled on Wednesday that they would be willing to cut rates in order to combat slowing global growth and cooling inflation.
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.
Elsewhere, the euro was stronger on the weak dollar, with EUR/USD up 0.2% to 1.1210, while sterling surged, with GBP/USD up 0.6% to 1.2626. USD/CAD fell 0.1% to 1.3357.
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 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.