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13.09.2019: USD perked up amid upbeat retail sales (USDХ, USD/CAD)

After a serious drop, the US dollar is about
to recover against a basket of six major currencies. The Canadian dollar is losing ground following
oil prices. The US dollar index rebounded to 98.12 in
the early North American trade. Dollar bulls are now holding the upper hand
inspired by upbeat data on the US retail sales. This metric jumped by 0.4% in August, stronger
than expected. The consensus suggested a more modest climb. Technically, if the index retreats to the
psychological level of 98, its downside potential will increase notably. The US dollar is the most sensitive to the
policy meeting of the US central bank and a thaw in the trade conflict between Washington
and Beijing. The decision of Donald Trump to delay a tariff
hike on China’s imports put pressure on the US currency. This happened on the back of growing yields
of US Treasuries. The US dollar is the most confident versus
its Canadian rival which is losing steam across the board. As a commodity currency, the loonie is vulnerable
to any dip in oil prices. So, the USD/CAD pair rose to the level of
1.3230, the highest mark of the week. After monetary easing by the ECB, traders
are now shifting focus towards the Federal Reserve. Investors have already priced in a rate cut
by the US regulator at the meeting in September. Besides, financial markets foresee further
monetary easing in October and December. The policy meeting next week will reveal whether
Fed officials have accepted criticism from the US President.

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