Daily FX Trading Update: CAD Sinks on Weaker Crude Oil

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USD
The US dollar had a mixed performance as there were no major reports on deck. Today has the new home sales report and the Richmond manufacturing index on tap, although traders might be less sensitive to data as they stay on the lookout for more clues on how Yellen’s Jackson Hole testimony might turn out.
EUR
The euro advanced against most of its counterparts even though there were no major releases. Traders must be positioning ahead of today’s PMI reports, which are slated to show improvements in the manufacturing and services sectors of France and Germany. Stronger than expected data could reassure market watchers that the region was able to hold its ground even after the Brexit vote.
GBP
The pound recovered from Friday’s slump as UK PM May has yet to confirm whether or not they would trigger Article 50 earlier than initially stated. There were no reports out of the UK economy yesterday while today has the CBI industrial order expectations report on tap.
CHF
The franc tossed and turned without establishing much direction since there were no major market reports released. There are still no reports due from the Swiss economy today but the franc could take its cue from the euro zone reports.
JPY
The yen filled the weekend gaps quickly as traders didn’t get much follow-through from Kuroda’s dovish remarks over the weekend. There were no reports out of Japan yesterday while today has the flash manufacturing PMI on tap and another testimony by Kuroda.
Commodity Currencies (AUD, NZD, CAD)
The Loonie gave up a lot of ground as crude oil prices settled lower on the expiration of September contracts. Meanwhile, the Kiwi enjoyed a boost after RBNZ head Wheeler said that rapid rate cuts could do more harm than good. In Australia, the CB leading index posted a meager 0.1% uptick. New Zealand’s trade balance is due next.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.