Canadian Dollar In Focus Today
US Dollar Testing Resistance
The US dollar has been back on the offensive today with the index testing the 97.42 once again today following a brief move above the level yesterday. With no tier-one US data on the sheet this week, the move higher is still finding support from better data into the end of last week, which helped lift sentiment for the greenback.
Euro Lower Again
EURUSD has been on the backfoot today with price trading back down to 1.1080 last as the rejection from the 1.1166 level continues. Price continues to be weighed down by the rally in USD ahead of the ECB meeting tomorrow. The meeting is not expected to differ much in content from last time around with the ECB to stay on hold while citing a cautious, wait-and-see approach.
GBP Holds Above Support
GBPUSD is continuing to hold its ground today with price still in the green over the week. Trading 1.3048 last, GBPUSD has spent the week back above the 1.3014 level, though flows have been light. Later in the week, PMI data sets should offer better volatility.
Risk Markets Pull Back From Overnight Highs
Risk assets have softened again this morning following a burst higher overnight which saw US equities trading into fresh, record highs. The SPX500 trades 3331.23 last as the index pulls backs lightly from overnight highs of 3336.23.
JPY lower, Gold Higher
Safe havens have had a mixed day so far over the early European session with gold higher against USD while JPY has been lower. XAUUSD trades 1557.17 last, back above the 1556.75 level for now. USDJPY trades 109.95 last, still holding above the 109.71 level.
Crude Still Down
Crude oil prices have been lower again today with price trading 57.91 last, sitting just above the week’s lows. Later today, the market will receive the API report (ahead of tomorrow’s main EIA release). The data, which has been delayed by one day this week, will give the first glimpse at last week’s inventories levels and could see crude breaking lows on a bearish release.
Loonie Pulls Back From Highs
USDCAD has been lower so far today. Despite the rally in USD and weakness in crude, CAD has seen a recovery that has pulled USDCAD back from the recent 1.3091 highs to trade back below the 1.3078 level at 1.3076 last.
Canadian CPI is due today but the main focus is the BOC rates meeting. Though no change is expected, traders will be keen to receive the bank’s latest assessment with a view to gauging the likelihood of any easing action.
Aussie Breaks Support
AUDUSD has been lower today, weighed on by the continued strength in USD. Price has now broken down beneath the .6850 level that had been underpinning the pair. Looking ahead to tonight’s Asian session, Aussie unemployment data will be the main focus.