Slow FX as Emerging Markets and China are up

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Slow FX as Emerging Markets and China are up

The U.S. Dollar stayed put without much volatility in the FX flows based on uncertainty over trade, improved data out of China, and evidence of things slowing down in the American economy.

Overview

The mixed bag makes for ranges being tight and lines on FX charts looking rather flat unless you zoom in. Had it been any currency other than the buck, the contraction in Industrial Production revealed yesterday for March would have caused more havoc since it was a surprise figure and one dwindling also in Europe.

It is clear that China is not in the sluggish state many thought since Gross Domestic Product, Factory Orders, and Sales data all beat expectations of expansion. Additionally, the leaders of the nation have pledged to stimulate the economy. Meanwhile, many items unresolved have caused stagnation on the other side of the Atlantic and now we may start feeling some of the effects of it here. Stock exchanges are rising, but the greenback knows not where to go.

What to Watch Today…

  • No major events scheduled for today.

Complete Economic Calendar can be found here.

CAD

The “Loonie” has improved by 1.1% since the end of last month, improving primarily as a surprise lower oil inventories have improved prices of the dark gold. Ultimately, the Canadian economy and housing market seems a bit fragile with recent economic indicators causing economists to downgrade forecasts.

Regardless, that is something happening all across the globe and the Canadian Dollar is just diligently going with the positive vibe in commodity markets. Our prediction is that if things do not turn out as negative as estimated, higher oil prices and a steady economy will keep appreciating our neighbor currency.

GBP

The Pound is bound to be in suspense for the time being since politicians are attempting to take a break from working on Brexit strategy. Everything remains possible now that the deadline for leaving was extended to October 31st. However, not everyone thinks anyone deserves a reprieve from Brexit consuming their every thought right now.

EU President Donald Tusk was very critical yesterday of Parliament’s planned “holiday” and said this was no time for it. The extension was not provided for vacation, but for the purpose of cramming and finalizing how the U.K. is to remain in trading terms with the EU once it leaves as a member of the single market.They have had years, need to work on it now, relax later. The economic havoc could still come as everything keeps being delayed. For now, inflation in the form of consumer Price Index rose as expected, 0.2% for March. As of now, FX volatility is quite low and no movement.

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