Canadian Dollar Holding Gains



The US dollar is starting the last day of the month with a decidedly mixed tone.  Gains against the Canadian dollar, Euro, British pound, and Swiss franc have been offset by losses against the Japanese yen and Australia dollar.  The New Zealand dollar opened unchanged from Friday’s close.

Another North Korean missile test on the weekend spooked Japanese traders.  They sold USDJPY down to a low of 110.32. The move was reversed in Europe and the currency pair opened near the middle of the 110.32-110.76 range in New York.

AUDUSD and NZDUSD traders were busy in the early going, thanks to domestic and China economic data releases.  China’s official Purchasing Manufacturers Index was below forecasts, coming in at 51.4 vs. the expected 51.6. AUDUSD was sold initially but the move was reversed in Europe.

New Zealand Consumer confidence was a bit of a disappointment and coupled with the slightly weaker china data, led to steady NZDUSD selling and that currency pair opened in New York near the overnight low.

FX markets couldn’t get any traction in Europe despite economic data releases that were slightly better than expected. Eurozone core inflation rose 1.2% vs. forecast for a 1.1% gain. The Eurozone unemployment rate dipped.  Germany posted German a forecast beating 1.1 5 jump in Retail sales.  (forecast 0.2%) That wasn’t enough to lift EURUSD.  The proximity to strong resistance and the magnitude of last week’s rally led to profit taking.  EURUSD drifted lower and opened near the bottom of its 1.1724-1.1761 range.

Sterling saw its best level in Asia Then it began a slow drift lower, dropping from 1.3149 to 1.3098.  It recovered to 1.3119 in New York.

WTI oil printed $50.00/barrel in Europe and then sprung a leak with prices declining down to $49.45 in New York trading. Prices are supported by rising expectations that the supply/demand imbalance is starting to normalize.

USDCAD opened at the session low in Asia but gains were capped at 1.2485.  Broad US dollar weakness, firm oil prices and strong Canadian economic data are keeping the USDCAD focus on the downside.


FX Ranges for major currency pairs


Close Open High Low
28-Jul-17 31-Jul-17
EURUSD 1.1751 1.1734 1.1761 1.1724
USDJPY 111.10 110.55 110.76 110.32
GBPUSD 1.3135 1.3113 1.3149 1.3098
USDCHF 0.9689 0.9696 0.9705 0.9665
AUDUSD 0.7972 0.7974 0.7988 0.7957
NZDUSD 0.7484 0.7484 0.7520 0.7483
USDCAD 1.2434 1.2467 1.2485 1.2434
GOLD 1269.44 1267.65 1270.95 1266.11
WTI 49.72 49.79 50.00 49.60

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