USD lows evidence of protectionist USA
January 25, 2018
Europe Market Movements
The EUR touched a 3 year high against the USD yesterday, spurred on by positive economic sentiment data yesterday. The GBP also posted strong gains, currently trading at 1.4262, a mark last seen well over a year ago. Traders will be listening very closely today to the ECB President’s speech at 13:30 GMT. Judging from past trends, the markets will certainly react.
US/Canada Market Movements
The USD took another beating yesterday when US Treasury Secretary Steve Mnuchin said that a weak dollar was good for US trade. The US Dollar Index has fallen by 1.9% so far this week. Next on the USD radar is Donald Trump’s speech today in Davos. Trump is expected to take his ‘America First’ policies to the world, which could give the greenback another beating. The CAD rose by 0.51% yesterday against the USD, and this morning it’s trading at 0.8111, up from yesterday’s 0.8055. Keep an eye on Canada’s Retail Sales today.
Asia/Oceania Market Movements
The JPY has posted strong gains against the USD but the strong yen hurts Japanese imports which sent the Nikkei to a two week low – 23,669.49. Asian shares have hit a record high today, with the MSCI index of Asia-Pacific shares advancing 0.3% to an all-time peak but fears remain of a protectionist USA.
as overtaken its September peak and it’s on track for its highest close since August 2016. It rose by just over 1% in London trading, rallying by 9% since mid-December. Oil prices have rallied in response to a decline in US inventories. WTI closed yesterday at $65.61 a barrel and Brent at $70.55.
|12:45 GMT||EUR: ECB Interest Rate Decision|
|13:30 GMT||CAD: Retail Sales|
|23:50 GMT||JPY: BoJ Monetary Policy Meeting Minutes|