NY Open: Dollar drifts in sluggish trading
FX Trader, Loonieviews.net
The US dollar is modestly weaker in a sluggish New York trading environment. Traders appear reluctant to extend US dollar losses much further due to the magnitude of the correction this week because of the reality of a robust US economy and a hawkish Fed. The greenback inched higher against EUR, GBP, and CHF, is flat against AUD, NZD, and JPY, and posted a tiny gain against CAD.
Traders are content to bide their time until the release of the August 1 Federal Open Market Committee meeting minutes at 18:00 GMT. The minutes are not expected to offer any surprises leaving the Friday/Saturday Jackson Hole Symposium as the next market flashpoint.
President Trump’s political and possible legal woes are an entertaining distraction in a sluggish trading environment but are unlikely to impact FX markets. The Washington Post reported that the US Constitution doesn’t allow for the criminal indictment of a sitting president;
Wall Street is ambivalent. The DJIA opened in the red put is currently trading in positive territory. The S&P 500 is flat and the NASDAQ is slightly lower.
USDCAD bounced erratically after the June Retail Sales data were released. The -0.2% decline was exactly as forecast. Statistics Canada noted that Q2 Retail Sales rose 1.0% compared to 0.5% in Q1. The more significant risk to the Canadian dollar is the Nafta renegotiation. Politico reported that a US/Mexico “handshake” trade deal might be announced as soon as tomorrow. Canada was excluded from the last series of meetings, and if the US/Mexico have a deal, Canada may be in a “take it or leave it” position.
USDCAD is in a minor downtrend while prices are below 1.3040 looking for a break of support in the 1.2990-1.3005 zone to extend losses to 1.3060. A decisive break below 1.2960 targets 1.2750. A move above 1.3040 suggests further 1.300-1.3200 consolidation.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.
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