The U.S. dollar is a touch weaker this morning with the biggest losses coming against the safe-haven Japanese yen.
Stocks rebounded yesterday after a steep decline on Friday. While futures show a modest advance for today’s open, market participants appear to have let the trade war dampen the recent rebound.
The greenback did eke out gains versus the Australia and New Zealand dollars after Reserve Bank of Australia Deputy Governor Guy Debelle said “threats to the global rules-based trading system” were a major risk to Australia and New Zealand.
Second-tier data will be released late this morning so expect currency markets to move with trade news, if at all. June FHFA house prices are out at 9 a.m. Consumer confidence and the Richmond Fed manufacturing index will hit the wire at 10 a.m.
What to Watch Today…
- Richmond Fed at 10 a.m.
Complete Economic Calendar can be found here.
The Euro was slightly higher but still remains near the bottom of recent ranges. Traders are keeping a close eye on political developments in Italy. Conflicting overnight headlines kept EUR/USD mostly in check. The Five Star movement and the Democratic party have until tomorrow night to establish a parliamentary majority that can form a government or run the risk of a snap election.
The second reading of German GDP confirmed that Europe’s largest economy is flirting with recession. A slump in exports has driven the slowdown as global trade tensions have taken their toll. The data comes a day after a report showed business sentiment at the lowest level in years.
The Canadian dollar jumped to its strongest level in nearly two weeks. The loonie benefited from the 1.3% pop in the price of crude oil. There was no economic data released in Canada today so the currency is likely to continue to trade with commodities as it tests key technical levels.