Morning Preview: USD Marches Higher as Central Banks Come into Focus
Rowan Crosby • 1 min read
The USD rose against the major currencies overnight while stocks ground their way up. There were some rumours around about US President Trump and his tax reforms failing, but they were quickly put to bed. At the same time, the announcement of the new Fed Chairman is getting closer and that has markets on the edge of their seats.
As the week rolls on we are going to be running into some big data events that will be the key drivers for a few of the key forex pairs. The ECB rate decision is on Thursday and on Wednesday with have the BOC.
In early Asian trade, there's a heap of data out of Australia, with most of the interest being in CPI. There are rumours of interest rate increases, however, as yet signs are still mixed. A strong reading might help spark the AUD which has taken a beating in recent sessions.
The US Dollar Index (DXY) still hasn’t been able to rally past the 94.00 mark. If we are able to break out, then there will be extreme pressure on the majors. The commodity currencies, in particular, look vulnerable at the moment.
US Dollar Index – 240 min Chart.
Top Economic Events Today
AUD – CPI
EUR – Business Climate
GBP – GDP
USD – Core Durable Goods & New Home Sales
CAD – BOC Monetary Policy