The U.S dollar was fairly quiet overnight but has caught a nice bid early in early trading, gaining against most of its trading partners.
Overview
There is plenty in the way geopolitical events on today’s docket that could affect the direction of the greenback.
President Trump will be meeting with the top Chinese trade negotiator today. It was reported yesterday that China would propose to purchase $30 billion more in U.S. agricultural products; a sign that progress may be being made. Expect the greenback to be susceptible to trade headline risk later today.
There is no major economic data set for release but a slew of Fed speakers will keep traders busy. Atlanta Fed’s Bostic is currently speaking in New York but has yet to move markets. The Fed’s Williams, Clarida, Potter, Bullard, Harker, and Quarles will all make remarks throughout the day at different events.
What to Watch Today…
- Numerous Fed Speakers Throughout the Day
The complete economic calendar can be found here.
CAD
That Canadian dollar is on the offensive this morning as the price of oil continues to rise. WTI touched its highest level since mid-November. The loonie was able to add to its gains early today following retail sales data that was not as disappointing as expected. December sales fell 0.1%, but not as bad at the 0.3% drop that was forecast by economists.
GBP
The sterling is under pressure this morning, but it still up for the week against the U.S. dollar. The sterling is about 1.0% stronger on the week. Brexit seems to be coming to a head as we are just over a month away from the March 29 deadline. It has been reported that Prime Minister Theresa May will ask for an extension if Parliament backs the Brexit deal next week. Running the risk of sounding like a broken record, GBP/USD will remain at the mercy of Brexit related headlines.
