US Wrap: Greenback gains with Wall Street rally
- New York Fed names John Williams President to replace William Dudley
- Wall Street rebounds as White House dials back anti-Amazon rhetoric
- Loonie rises on Nafta outlook, with a 0.5% gain
President Trump’s reported interest in having a deal outline ready to announce in Peru next week fueled the move down.
Support in the 1.2780 area held because Mr Trump also threatened Mexico that Nafta was at risk if they didn’t stop a migrant caravan before it reached the US border.
The currency pair tracked EURUSD moves and was undermined by broad US dollar strength which offset the better than expected UK Manufacturing PMI data released earlier in London.
Rising Russian output and rumours of Saudi price cuts appear to have been forgotten today. The American Petroleum Institute said weekly crude inventories dropped 3.28 million barrels.
It’s more a grimace than a smile. The Dow Jones Industrial average rallied 1.65%, S&P 500 gained 1.26% and the Nsadaq rose 1.04% which was not enough to recoup all of yesterday’s losses.
Profit-taking, bottom picking and a Bloomberg story saying the White House does not have any plans to go after Amazon, helped to lift prices.
Even though it is a poor, leading indicator for nonfarm payrolls, traders will still look to the ADP employment report for clues.
The question is if March Eurozone CPI (forecast 1.1%, y/y ) can break EURUSD out of its 1.2240-1.340 range.
EURUSD 1 hour chart
-- Edited by Adam Courtenay
Michael O'Neill is an FX consultant, currency strategist and author of the Trade of the Day at Loonieviews.net. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.