EURUSD is Leading The Pack

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USD Trading Softly Despite Better Data

The US dollar has been a little lower over the European morning on Wednesday with the index finding resistance once again at the 97.11 level. US retail sales yesterday surprised to the upside, printing 0.4% vs the 0.1% expected. However, with the Fed expected to ease this month, the data is having limited upside impact.

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EUR Higher Against USD

EURUSD has traded higher this morning, benefiting from USD weakness. Today’s moves higher come on the back of a push lower yesterday in response to weak data from Germany and the Eurozone which is keeping ECB easing expectations elevated. EURUSD broke back down below the 1.1217 level yesterday and is currently fighting to get back above.

Brexit Woes Weighing on GBP

GBPUSD continues to slide as Brexit uncertainty outweighs data as the main price driver. CPI released this morning was in line with expectations over June. However, with the risk of a no-deal Brexit increasing, the market remains heavily short GBPUSD which trades 1.2398 last having broken down beneath the 1.2437 level.

SPX500 Holding Near Highs

Risk assets have had a subdued session so far with the SPX500 just down off overnight highs. Price is holding above the 3000.39 level for now, with the focus remaining on further upside as we head towards the July FOMC meeting at the top of the month. In the UK, a weakened GBP is keeping the UK100 well supported with price now back above the 7555.3 level and holding.

Safe Havens Down Against USD

Safe havens have been muted today also. Despite a softer US dollar and weakness in US equities, both gold and JPY have found themselves lower against USD today. XAUUSD trades 1401.37, with price moving down into the lower portion of the 1391.61 – 1433.48 range which has framed price action over the last two months. USDJPY trades 108.27 last as the recovery off the 107.90 level gathers pace.

Crude Traders Await EIA Report

Oil prices have recovered a little of the ground lost in yesterday’s deep slide which occurred despite the latest API report showing a further drawdown in US crude stores. Traders will be waiting to see if the headline EIA report released later today can confirm the moves in inventories. Crude is trading 58.11 last as the move below the 60.32 level gathers pace.

Commodity Currencies Capped

USDCAD has had a volatile session so far today with price moving lower initially before reversing the move to trade into the green. The move has come despite firmer oil prices and a weaker us dollar. USDCAD trades 1.3060 last as the recovery off the 1.3037 continues.

AUDUSD is holding up against USD today despite the recent move lower that occurred as price once again approached the .7048 level. Lower gold prices and a stronger US dollar over recent sessions has weighed on the Aussie. However, the focus remains on further upside in the near term given the dovish Fed expectations which are likely to weigh on USD over the coming months.

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