The mood was modestly positive earlier today in Asia, reflecting a rise in oil prices. In Asia some markets were closed for the end of Ramadan.Oil has managed to disctance itself from the recent 10-month lows but still remains weak. A weaker USD helped Oil prices recover some ground.
The US Dollar index, an index that measures the strength of the USD compared to a basket of currencies, remained weak this morning as well after pulling off from the highs of 97.87 seen Tuesday of last week. Price is currently at 97.27 just above the 20 DMA. Some poorer than expected US data have raised doubts of more rate increases this year, although Fed talk has remained quite hawkish.
EURUSD has held so far just a few pips off last Friday’s highs of 1.1208 as we currently trade at 1.1193. Euro has defended well so far but appears to be slightly lower this morning at least up to the time of writing. Realtimeforex.com’s TraderTip is not expecting any major trends today but the preferred scenario is that if 1.1184 holds we may see an attempt higher to 1.1206/1.1222 to then pullback to 1.1184/1.1171 zone.
From the economic docket this is what the upcoming looks like when it comes to the most salient events or data items: we see that later today we have US durable goods orders; On Tuesday we have US consumer confidence and scheduled speaches for Carney and seperately Yellen; On Thursday we have German CPI and US Annualized GDP and finally on Friday we have Chinese PMI manufacturing, German Unemployment Change and EZ CPI estimate, CAD GDP and US PCE.
