EURUSD traded sideways, but well-above yesterday’s in the 1.1735 area until the European session opened. Seasonally-adjusted, Eurozone Q2 GDP posted a 2.2% gain, topping the 2.1% that was predicted. Eurozone nations also recorded better than expected GDP data, suggesting that the recovery is improving and is broad based.
EURUSD bounced between 1.1692 and 1.1757 on the news and is currently trading at 1.1708 in New York.
Not to be outdone, the UK announced that the unemployment rate dropped to 4.4%, a new 44 year low. Average earnings jumped 2.1% in the three months ending in June, beating the 1.8% forecast. GBPUSD also jumped, rising from 1.2843 to 1.2901. It is trading at 1.2885
The Australian dollar was the best performing major currency overnight. AUDUSD rallied steadily from the opening low of 0.7817 to 0.7867 on profit taking and an upward revision to domestic wage data.
The New Zealand dollar was not as robust. NZDUSD inched higher in a narrow 0.7225-0.7251 range.
Oil prices found a bit of a floor in after hours trading on Tuesday. The API reported a 9.2 million barrel draw-down in US crude inventories. WTI bounced from $47.05/barrel to $47.91/b. Over-supply concerns are limiting gains.
The Canadian dollar wasn’t quite forgotten, but it was mostly ignored. USDCAD drifted down from a peak of 1.2768 to 1.2726, where it opened.
Today is the official start to the NAFTA renegotiations. With a billionaire, blow-hard businessman representing the USA and a mediocre drama teacher championing Canada, it doesn’t look too good for the Loonie. Just saying.
Today’s US Housing Starts, Building Permits and EIA Crude stocks change reports will provide a little diversion ahead of the 2:00 pm (EDT) release of the FOMC minutes from the July 26 meeting. Those looking for any fresh insight about balance sheet reduction or rate increase plans will likely be disappointed.
|16-Aug-17||Open-6 am EDT||High||Low|
USDCAD Technical outlook:
USDCAD is in an uptrend channel from August 1. The lower boundary is at 1.2700 and the upper boundary is at 1.2815. If the lower level stays intact, the channel top is the target. A decisive break below 1.2660 is needed to suggest a short-term top is in place and target support at 1.2550. For today, USDCAD support is at 1.2705 and 1.2680. Resistance is at 1.2750 and 1.2770.
Today’s Range 1.2705-1.2770
Author: Agility Forex
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