The US dollar rally, very much in evidence last week, has stalled. However, there isn’t any evidence that a US dollar sell-off has gained momentum, either.
NZDUSD rallied, rising from 0.6915 to 0.6974, after the RBNZ policy statement. Rates were left unchanged at 1.75%) but inflation forecasts were tweaked higher, giving the statement a hawkish bias.
AUDUSD traded sideways in a 0.7664-0.7691 range.
USDJPY moved higher in early Asia trading climbing from 113.79 to 114.05. Prices reversed, and USDJPY dropped to 113.27 in New York trading, in part due to concerns about the US tax cut talks.
EURUSD was on life-support until mid-morning in Europe. Prices rallied, dropped and rallied again, within a 1.1590-1.1632 range. Revised ECB growth forecasts predict higher Eurozone growth in 2018 and lower UK growth in the same period.
Sterling trade choppily. GBPUSD climbed to 1.3151 in Asia, but weak RICS Housing Price data turned buyers into sellers. GBPUSD dropped to 1.3087 by the New York open but has since bounced to 1.3120 on broad US dollar selling.
Oil prices were steady around the $57.00/b level with yesterday’s increase in US crude inventories as reported by the EIA, dampening enthusiasm a tad. Gold prices traded higher on US dollar weakness
The Canadian dollar is benefitting from the bearish US dollar sentiment and high oil prices. USDCAD is probing support at 1.2690 that if broken will extend losses to the 1.2640-60 area.
USDCAD Technical outlook:
The intraday UISDCAD technicals are directionless inside a 1.2715-1.2815 range. A topside break leads to 1.2915 while a move below 1.2715 would target 1.2605. USDCAD is currently trading below the mid-point of that range.
Today’s Range 1.2715-1.2815
Chart: USDCAD 30 minute