USD retreats as factory orders weaken

9 April, 2019

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive fall in factory orders. As a result, the USD was trading weaker on the day.

The monthly durable goods orders report was confirmed to show a 1.6% decline on the headline as per the initial estimates. The greenback reversed the gains from last Friday. The US Treasury will also be auctioning the 3, 10 and 30-year bonds this week.

Sentix Investor Confidence Improves

The common currency rose 0.3% on Monday boosted by weaker demand for the greenback. Economic reports from the eurozone saw the Sentix investor confidence rising to -0.3 for April. This was better than the median estimates which forecast a decline to -1.7 and up from -2.2 from the month before.

Can EURUSD Maintain the Bullish Momentum?

After price consolidated briefly, we saw a breakout from the short term resistance level near 1.1246. The euro posted intraday gains to reach highs of 1.1273 before modestly pulling back. In the near term, we expect the pullback to stall near the resistance level of 1.1246. A rebound off this level could indicate the upside momentum to continue with price targeting 1.1275.

Oil Prices Lift Loonie Higher

Oil prices surged on Monday amid a host of geopolitical developments. The fighting in Libya escalated which threatens the oil supply. This comes on top of the OPEC oil cuts and the US sanctions on Iran and Venezuela. In addition, the Washington administration designated the Iranian revolutionary guard as a terrorist organization,  putting more pressure on the supply side. This impacted oil prices as NYMEX crude oil rose 2.1% and sent oil currencies higher.

Will USDCAD Decline?

After previously rallying to the highs above 1.3416, the USDCAD established resistance after failing to breakout higher. Short term support is now at 1.3136 which will be the downside target for the moment. A break down below this minor support level will see the USDCAD declining further toward the support area of 1.2858.

Gold Gains on Fed and Trump Skirmishes

Gold prices advanced on Monday, rising 0.61% on the day. The gains came amid an intraday surge in prices. Christopher Neely, an economist with the St. Louis Fed said that quantitative easing will not affect the US economy in a noticeable way. He stated this after Trump said that the economy would be stronger if the Fed had not raised interest rates.

Can XAUUSD Maintain the Gains?

After briefly testing the resistance level at 1301.50, gold prices retreated from the two-week high. We expect the bullish momentum to continue in the near term as XAUUSD could advance to 1307.50. This marks a retest of the support level which will now see a test of resistance. In the medium term, gold prices will continue to consolidate within the established range. 

Markets cautious on trade tensions29 May, 2019  

The markets were trading cautiously albeit amid a slight risk-on sentiment prevailing. US stocks closed slightly higher while safe haven assets shed...

Risk off sentiment sends gold higher24 May, 2019  

Investors continued to shun risk assets on Thursday amid a mix of global themes. The stalemate in the US and China talks alongside rumors that the US...

Market Reaction As Higher Tariffs Kick In13 May, 2019  

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...

USD Strengthens On ADP Payrolls2 May, 2019  

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...

BoC Holds Rates Steady25 Apr, 2019  

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...

Markets Open To A Quiet Trading Day22 Apr, 2019  

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...

Dollar Muted As Equities Rally Ease Off16 Apr, 2019  

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....

Market Risk Appetite Wanes10 Apr, 2019  

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared...

Unemployment Steady, USD Firms8 Apr, 2019  

The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period...