The USD Index is range bound this morning awaiting new economic numbers, an announcement on China/US trade talks including hopefully a resolution with Huawei, and tomorrow’s announcement by the Fed. Expectations are for the Fed to keep rates unchanged, but as for trade talks any outcome is possible.
CAD is range bound but building a base of support. Any resolution to trade issues with China would be very constructive. Oil and natural gas prices also appear to be building a base providing further support.
UK Parliament is voting later today on a Brexit plan. It’s not clear what amendments are to be included, but at a minimum PM May wants to ensure that there is agreement that the UK is actually leaving. Sterling has rallied sharply over the last week, so it seems reasonable that it would pull back on the news of the vote.
Key Economic Numbers: Forecast Previous
Redbook Year-over-Year – 7%
S+P Case-Shiller Home Prices 5% 5%