The US$ failed to breach the highs of December, Fed Powell’s speech this afternoon and the impending China talks will be key to guiding the US$ strength going forward.
The market will be waiting for direction from Fed Powell’s speech this afternoon and the Jolts Job Openings report is due this morning. The last few months this report has shown strength not seen in decades, so the market will be looking for any clues Powell is concerned with a strong employment outlook. Look for a pullback in US$ strength today.
The C$ is stronger this morning on higher oil prices. The C$ is struggling between underlying commodity strength providing economic support on the one hand, and on the other a government and Central Banker that wants the C$ lower. Look for some C$ strength today, but in an overall weakening trend.
The EUR hit lower levels again last night before rebounding. Look for further strength on momentum today, but Brexit is still awaiting resolution and the ECB is unable to raise rates, so the general trend remains towards weakness.
Key Economic Numbers: Forecast Previous
JOLTS Job Openings (Dec) 6.9M 6.888M
- Drummond Gill