DXY Index Carving Out Inside Day, Lighter Calendar Ahead
- The upcoming North American economic calendar is incredibly light, leaving the news wire as the most potent source of risk today.
- Sentiment for the US Dollar remains mixed following a volatile few days.
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The US Dollar (via the DXY Index) is carving out an inside day thus far, with today's high-low range coming within the high-low range established on Wednesday. Gains in USD/JPY have been offset by a rebound in GBP/USD, and with EUR/USD - the largest component of the DXY - trading flat thus far, the US Dollar overall is pursuing little meaningful price action.
Meaningful data releases proved sparse in the European trading session so far, and the North American economic calendar is light unto itself. There are the usual appearances by the weekly jobless claims data from the United States, hardly market movers as claims remain near cycle lows (a sign of labor market strength). Otherwise, no significant data is due out from either Canada or the United States today.
Accordingly, we'll be keeping focus on the news wire as the most potent source of event risk for today's session. There are three more Fed speakers (Brainard, Quarles, and Mester) set to give remarks today, although comments from policymakers have had little meaningful impact on the US Dollar thus far this week.
Similarly, this means that commentary from the White House regarding trade tensions with China, geopolitical tensions with Russia vis-à-vis Syria, and potential updates on the NAFTA negotiations are likely to be the prime sources of event risk over the course of today's session.
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--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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