US Dollar index touched 4-week lows at 94.43 during Monday’s session. The US Dollar index is an index gauging the strength of the USD against a basket of other currencies. So far USD performance this morning is verging onto a neutral.
On one side President Trump managed a victory as he announced on Monday that a US-Mexico trade deal had been reached and that would replace NAFTA. This in turn piles pressure onto Canada if it wants to keep the tri-party NAFTA between US, Canada and Mexico and accept the new terms on auto trade and dispute settlements.
However on the other hand US-China talks and the respective trade war between these two major economies is still lingering and seems to have overshadowed the US-Mexico deal.
Yesterday sentiment was positive as the major US equity indices closed in positive territory as news of the US-Mexico deal helped to ease some investor concerns. Markets also had a positive surprise on the data for Consumer Confidence Index for August that rose to 133.4 from a previous 127.9 and an expected 126.6.
The data with highest impact on today’s economic calendar shall be the US Annualized GDP for Q2. Prior to that from Europe we have German GFK consumer confidence and French GDP.
