NY Open: Greenback grinding out gains
FX Trader, Loonieviews.net
Summary: The dollar is in demand after Friday's nonfarm payrolls bonanza.
GBPUSD traded with a negative bias in a tight range. UK officials met with Eurozone Secretary General Martin Selmayr, who tweeted afterwards: “The meeting confirmed that the EU did well to start its no deal preparations in December 2017.”
Support in the 1.3040 area held and prices recovered to 1.3075 by 14:00 GMT.
USDJPY added to European gains, punching through resistance at 110.00 to test 110.15 aided by a small rise in US Treasury yields. The general US dollar demand is undermining EURUSD. US dollar selling pressures may abate slightly because of soft Factory orders data (-0.6% versus a forecasted 0.2%)
USDCAD traded steadily higher throughout the morning coinciding with a plunge 3.6% in oil prices in the same period. WTI dropped from an opening level of $55.36/barrel to $53.36/b as of 14:00 GMT which has entirely erased the Friday/Monday rally.
Wall Street traders may be suffering lingering effects from Sunday’s snoozer of a Super Bowl game. The major indices opened flat which is where the Dow Jones Industrial Average and the S&P 500 sat as of 14:00 GMT. The Nasdaq manages to squeeze out a 0.50%. Alphabet (GOOGL: Nasdaq) reports after the close.
US markets may be a tad reluctant to get too involved due to a lack of top-tier economic reports President Trump’s State of the Union address on Wednesday.