Today has been a little light on the data front with the exception of Canadian employment figures, which were released earlier. Headline employment had been expected to have risen by around 17,800 last month, while the unemployment rate was seen steady at 5.8%. While the unemployment rate did remain at 5.8%, the headline figure disappointed as employment fell by 1,100.
The euro opened the week on a strong note, recovering back to last week’s high near the 1.2450 mark. Price action moved sharply higher on the European open at 2:00 am CT and saw further gains as the U.S. dollar weakened on frothy data and a tweet from President Trump.
The U.S. currency is weaker against all major pairs as US tariffs targeting China were announced. The U.S. dollar was trading higher on Wednesday after the U.S. Federal Reserve hiked interest rates by 25 basis points as anticipated. Fed Chair Jerome Powell was neutral on his first press conference but the economic projections painted a strong U.S. economy.
The dollar rebounded today against all major currencies as tomorrow’s FOMC Meeting comes into focus. This price action started early on poor reads from UK inflation and German and Eurozone Sentiment data.
The Euro staged a strong rebound today after a poor finish to last week. A string of soft regional and Eurozone CPI reads started the Euro off on weak footing Friday. Further pressure was added on strong U.S. data that included Industrial Production, JOLTs Job Opening and Michigan Consumer Sentiment; the Euro finished the week at the lowest level since March 1.
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 appreciated during the week against major pairs. The currency got a boost from the release of the minutes from the January Federal Open Market Committee meeting. The brief statement was slightly hawkish, but the full notes from the meeting revealed the U.S. central bank upgraded its economic projections from those made in December and expects the 2% inflation target to be met in the mid-term.