Forex News Strategies

Hello I'm Christina my tokus and you're watching the daily market comment by mariachi kiriakos at XM calm american equity markets sailed into uncharted waters yesterday with all the major indices closing at new record highs. In a classic case of bad news is good news for stocks the catalyst behind these gains was a batch of disappointing US data which reinforced expectations.

That the Fed will act with force in reducing rates over the coming months the ADP employment print for June was lower than expected igniting worries that the official payrolls numbered due tomorrow may also miss forecasts likewise the is M non-manufacturing PMI declined by more than projected to hit a two-year low signaling that the malaise and manufacturing may have started to infect services as well US markets will remain closed today in celebration of Independence.

Day and for treaters that means liquidity will be thinner than usual in the FX market the positive equities mood translated into a boost for the commodity currencies the Aussie loony and kiwi outperformed their major peers the loony infect touched a new high for 2019 against the dollar supported by an uptick in oil prices and the overarching theme of policy divergence between the Fed and the Bank of Canada Canadian data has been strong lately in contrast to every other developed economy.

Which puts the Bank of Canada in the odd situation of being almost the only major central bank not about to cut rates that could make the loonie much more attractive from a relative rates viewpoint implying that the currency may still have a lot of room to appreciate from here the US president made headlines again on Wednesday after he tweeted China and Europe playing big currency manipulation game adding that the US should match what they're doing this is not anything new from Trump as.

He has made similar comments on currency manipulation despite the US Treasury not labeling those nations as manipulators what stands out though is the comment that the US should match which effectively is a call for a weaker dollar likely aimed at the Fed the greenback fell slightly on the news but recovered almost immediately to close the session nearly flat against the basket of six major currencies this was today's daily market comment 

thank you for reading us at XM calm

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