The U.S. dollar traded in a mixed direction overnight but broadly remains in ranges seen yesterday.
Overview
The Bloomberg Dollar Index is unchanged even as equity markets look to rebound after two days of losses. Stocks took a tumble yesterday after St. Louis Fed President James Bullard doubled down on his hawkish view toward future monetary policy. The greenback initially gained after the comments before retracing and settling into ranges. The Fed speaker docket is lighter today, with only Boston Fed President Susan Collins set to speak on the labor market later this morning. At 10 a.m., both existing home sales and the leading index will cross the wire. Neither print is likely to move currency markets so we might be set for a rare, quiet day.
What to Watch Today…
- Existing Home Sales at 10 a.m.
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CAD ⇓
The Canadian dollar is slightly weaker this morning and is the worst-performing G10 currency this morning. Crude oil prices have declined nearly 1%, putting downward pressure on the commodity-backed currency. The decline has accelerated somewhat this morning after data showed that Canadian raw material products rose 1.3% month over month.
GBP ⇑
The British pound continued its strong recovery against the U.S. even on the back of soft data. GBP/USD rose 0.5% despite U.K. retail sales posting a weaker-than-expected rebound in October. Excluding fuel sales, the volume of goods sold in shops and online rose 0.3% after a 1.5% drop in September. The low September number was likely due to shop closings for the funeral of Queen Elizabeth II. The print missed expectations of a 0.6% gain. Regardless, the sterling has risen 7% over the last two weeks.
