US Dollar Slips, Canadian Dollar Dragged Down by Soft Crude Oil Prices - US Market Open
USD: A rather lacklustre session thus far with major USD pairs trading in relatively tight ranges. With little on the economic calendar, markets await the latest developments pertaining to US-China trade wars. Elsewhere, comments from Fed’s Evans veered to the slightly dovish side with the rate setter stating that the neutral rate has moved down with current monetary policy not that far off the neutral rate.
CAD: Marginal losses for the Canadian Dollar, which is underperforming relative to its major counterparts as the currency is dragged lower by soft energy prices. Yesterday, API reported a larger than expected crude inventory build of 4.3mln barrels, as such, eyes are on the DoE’s for confirmation. Looking ahead, the key focus for the CAD will be Friday’s labour market report.
NZD: The New Zealand Dollar has held relatively despite the slightly softer employment report. The unemployment rate creeped up to 4.2%, above expectations of 4.1%, however, this is partially attributed to the increase in the labour participation rate, while the unemployment was below the RBNZ’s projection of 4.4%, suggesting that the central bank be on hold at next week’s meeting. Of note, money markets are pricing in a 67% likelihood that the central bank will lower rates next week.
Source: DailyFX, Refinitiv
Economic Calendar (06/11/19)
WHAT’S DRIVING MARKETS TODAY
- “Canadian Dollar Technical Analysis Overview: USD/CAD Awaits Breakout” by Justin McQueen, Market Analyst
- “Dow Jones, S&P 500, Nasdaq 100 Technical Outlook in Record Territory” by Paul Robinson, Currency Strategist
- “EUR/USD Tests Reversal Levels – Price May be on Verge of a Break out” by Mahmoud Alkudsi, Market Analyst
--- Written by Justin McQueen, Market Analyst
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