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The US Dollar index is almost at a six-month high despite a terrible EU GDP report, whilst the Canadian Dollar is anticipated to drop due to job losses.


08.09.2023
The US Dollar index is almost at a six-month high despite a terrible EU GDP report, whilst the Canadian Dollar is anticipated to drop due to job losses.

WTI Oil (opening level) $87.29

 

The US Dollar index is marginally weaker this morning in a quiet session but the index is still set for another weekly gain and is still near a six-month high. The only significant overnight news was the EU 2nd quarter GDP report which showed growth of only 0.1% so clearly high interest rates in contrast to the situation in the US is having a negative effect on the economy. Another reason for the US Dollar to remain strong.

The Canadian Dollar had another quiet overnight session as the market gets set for the August employment figures. The news will again be bad as the market expects the economy shed some 6K jobs last month and a jump in the unemployment rate to 5.6%. Once again I do not see a path to sustained Canadian Dollar strength in the near future and if the US Dollar remains strong we could easily see USD.CAD trading near the 1.3800 (0.7246) in the coming weeks.

 

Stocks are again pointing negative so they continue their poor run of form, once the employment report is out of the way FX markets should remain steady and range trade for the day



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