Sterling's Woes Continue; Loonie Falls for a Third Day

After falling yesterday, the U.S. dollar made minor gains across the board overnight.

Overview

However, the greenback remains stuck in tight ranges in general as the dog-days of summer have seen little volatility.

The U.S. buck is set for a third daily gain against the Canadian dollar as the price of oil fell about a percent. The Australian and New Zealand dollars were able to stave off a sell-off after China’s export growth beat forecasts in July despite claims that China is losing the trade war.

The news flow both at home and abroad remain light. There is no major economic data set for release in the U.S. today. Weekly jobless claims and producer prices will cross the wires on Thursday and consumer prices will round out the week on Friday.

 

EUR

The Euro rose yesterday, bouncing off a multi-week low against the U.S. dollar. However, the common currency’s momentum lost its steam overnight and EUR/USD slipped modestly. Without any fundamental data released today, look for the pair to trade on technicala. Dollar bulls might try to test the bottom of the range but there appears to be strong Euro-support at Monday’s lows.

 

GBP

The Sterling continues its dismal summer, falling to a fresh 11-month low against the U.S. dollar and a 9-month worst versus the Euro. The pound has fallen for five consecutive trading sessions on increased concern that Theresa May’s government will fail to hammer out a divorce package before the U.K. officials leaves the union at the end of March.