Previous Day's Market Highlights
Fed Chair Powell’s comments at the Jackson Hole Economic Symposium on Friday weighed on the dollar, disappointing some investors who had hoped for more hawkish comments. Powell supported the Fed’s current rate hike pace and reiterated trade concerns. President Trump has recently been outspoken in his criticism of the Fed’s rate hikes.
While Monday was a bank holiday in the UK, US trade was in focus as the US and Mexico agreed a trade deal to replace NAFTA. The peso initially gained, while the Canadian dollar strengthened on hopes that a deal with Canada will follow before too long. Other trade headlines were less positive as Trump said that it’s “not the right time” to talk with China.
The dollar was softer overall yesterday, pushing sterling-dollar higher towards 1.29 and euro-dollar towards 1.17. The euro gains led sterling-euro further below 1.11 to its lowest levels since September.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The dollar has seen renewed selling pressure this morning after making some gains overnight, maintaining sterling-dollar near 1.29 and euro-dollar in the upper half of the 1.16-1.17 band. A quiet data calendar will likely keep market focus on the latest geopolitical and trade headlines and may maintain exchange rates around current levels.
Looking further ahead in the week, there are a couple of items to keep an eye on amidst an otherwise fairly quiet calendar. On Wednesday, we have the second estimate of Q2 GDP in the US; on Thursday, Canadian GDP; and on Friday, the preliminary estimate of August Eurozone CPI.
Today's Economic Calendar
|1:30pm||USD||Goods Trade Balance (Jul)||$-70.82B||$-68.33B|
|2:00pm||USD||S&P/Case-Shiller Home Price Indices YoY (Jun)||6.5%||6.5%|