Sentiment from US session was mixed after Thursday’s close which saw the S&P and the Nasdaq lower. The mood turned even more sour for the Asian counterparts as the major equity indices there registered losses.
Some noticeably strong Durable Goods Orders from the US, and for the month of June has helped the USD garner support yesterday. The better data helped US Treasury yields go higher. The US Dollar index is currently flat at 93.87 this morning. We now look onto the US Annualized GDP later this afternoon for more direction but so far the USD seems biased lower.
The euro is still holding tight to its recent gains, as it continues to enjoy from expectations that the ECB may soon be changing its monetary policy stance. EURUSD is currenty at 1.1688 within a safe distance above the 50 DMA of 1.1624. Data later today from both the German CPI and US GDP will likely decide the trend for the currency pair.
The Swiss Franc emerges as one of the largest losers this morning amongst the majors. Analysts expect the SNB to hold onto loose monetary stance as it tries to avoid a strengthening CHF. Consequently the SNB’s divergence from other central banks that are slowly shifting away from monetary easing is starting to leave its toll on the CHF.
On the data front, today apart from the US annualized GDP we have Canadian GDP and German CPI.
