Tight Ranges To Open The Trading Week
Shain Vernier • 1 min read
It has been a modest open to the trading week, with the U.S. indices opening in the red. At press time, the DJIA is off over 125 points and the S&P 500 is down slightly. The USD is hanging in there, trading in a tight range against most of the majors. All in all, it is a typical Monday session.
Today’s economic calendar is relatively vacant. U.S. Treasury auctions are the highlight today, with short and long-term debt instruments hitting the market. It will be interesting to see how much interest there is in bonds. With the March FED meeting just over a week away, investors may go long the debt market in anticipation of the coming rate hikes. Stay tuned.
It has been an interesting few sessions for the Loonie. Since the rejection of 1.3000 as topside resistance, the USD/CAD appears to have entered a corrective phase.
Tomorrow will bring us more action in the USD/CAD as the crude oil inventory cycle kicks off. For today, I expect rotation to be the rule.
Here are the downside support levels to watch for the remainder of the session:
- Support(1): Bollinger MT, 1.2734
- Support(2): Daily SMA, 1.2627
Overview: It is a typical Monday on the markets. With a lack of economic events to drive participation, volatility is limited. Patience will be key as we move into the heart of the trading week.