The mid-week trading session created little to write home about. However, one thing was very apparent – the US dollar found more friends. This follows a multi-day string of losses for the currency after Jay Powell and the Fed offered up a dovish serving at last week’s announcement.
The buck continued to trade firmly on Wednesday, briefly pushing into the lower halves of the $1.26 and $1.13 against the pound and euro, respectively. The morning session saw a neutral performance from BoE governor, Mark Carney, who was speaking at a Parliamentary select committee hearing. The neutral tone actually saw the pound perk up a little, most likely a relief move due to markets having priced in the usual dovish stance from the central bank boss.
The afternoon saw an important durable goods orders report from the United States. As mentioned in previous reports, US data-points will now take on additional importance as they’ll be the key indicators in determining just how fast and aggressive the Fed begin to decrease the level of interest rates. The data had both good and bad elements to it yesterday, overall, with sentiment already negative due to the general decline in US data, the report was on a net basis positive for the buck which has kept it supported into Thursday’s trading session.
The main highlight of today’s trading session will be the 3rd and final release of US Q1 GDP. The report is expected to see no change from the 3.1% 2nd reading, however, should there be any deviation from this numbers then there could be a move in the greenback.
Written by Viv Savani. 8:43am, June 27th 2019
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8:34am, September 17th 2019
Greenback starts the week on the front foot, oil surges…