Soybeans and crude oil have the most trending pivot math for the coming week, and all of my tracked symbols have narrow ranges on one or more of daily, weekly, or monthly charts. The Aussie, Pound, Crude, and Gold are range-compressed on all three charts! Breakouts are brewing.
This was another constructive session for the Euro on disappointing U.S. data and drama in Washington. First, Core CPI was in line with expectations at 0.2% MoM and 1.8% YoY, however, this was slower than January and December.
All things considered, the Euro reacted in a very quiet manner to today’s news. A strong read on private ADP Payrolls along with better than expected Nonfarm Productivity and Unit Labor Costs supported the dollar this morning.
All things considered, this was a very quiet session for the euro. The currency traded in a range of less than a penny in the face of a deadlocked Italian election, the formation of a coalition government in Germany and President Trump’s trade tariff talk.
The Canadian dollar has been the worst performer among the major currencies today, continuing its recent poor run of form. The Loonie has been undermined amid concerns over planned US tariffs on steel and aluminum.
The U.S. dollar sold off this afternoon, losing about 0.5% from session highs on newly imposed tariffs on aluminum and steel imports. This news crowded the headlines and overshadowed Fed Chair Powell’s congressional testimony. The euro traded to a session low of 1.2166 as Powell began, but reversed sharply in an outside-bullish reversal session.