The USD Index fell on Friday due to lower rate concerns. The market is looking forward to this Wednesday at 2pm when the Fed will make a formal rate decision announcement. This is Powell’s first opportunity to affirm his earlier comments towards easing, or at least no further rate increases. The decline in the US Dollar Index has perhaps extended a little too far. A small recovery today shouldn’t be a surprise.
CAD rallied sharply on Friday, not because of the USD dollar, but because of renewed economic strength reflected in commodity prices. Also, the US and China are having trade discussions and there is hope for an announcement towards a resolution this week. Energy and grains rallied on Friday, but most especially the metals. A retracement breather is most likely today.
Mirroring the USD, the EUR rebounded sharply Friday. Look for range trading. The UK Parliament is voting tomorrow on a new Brexit, with amendments that are still under discussion.
Key Economic Numbers: Forecast Previous
None today, but with the government shutdown temporarily over there will be plenty of numbers later this week as staff return to their desks.