After retreating modestly during yesterday’s session, the greenback is back on the offensive.
Overview
The Bloomberg Dollar Spot index is up 0.2% at the time of writing. Global risk sentiment is slightly improved but not enough to put downward pressure on the greenback. Futures show American shares will open slightly higher. This morning’s economic docket painted a dour outlook for the economy. July US Durable goods came in unchanged, failing to meet estimates of a 0.8% increase. June’s print has upwardly revised a touch, but it is little comfort. Pending home sales will hit the tape at 10 a.m. The main focus of the week remains on Fed Chairman Jerome Powell and his speech in Jackson Hole on Friday.
What to Watch Today…
- No major economic events are scheduled for today
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EUR
The Euro gained a touch yesterday even following data that showed that the Eurozone economy slowing. Higher European gas prices have kept the common currency under heavy pressure, and the EUR/USD pair remains near the lowest level in 20 years. The Euro has not found support even as traders increase bets that the European Central Bank will need to take bolder action to tackle inflation. Per Bloomberg, money markets are now fully pricing in a full percentage point of policy tightening at the ECB’s meeting in October. That would bring the deposit rate to 1.0%.
CAD
The Canadian dollar slipped against the U.S. dollar, giving back about half of the gains it experienced during yesterday’s session. The loonie’s fall comes even as the price of oil advanced for a second day. The overnight move could be attributed to widespread dollar strength as market participants up bets that the U.S. Federal Reserve will hold a hawkish tone at this week’s symposium in Jackson Hole. There is no major economic data on the Canadian docket today.
