Tuesday September 17th, 2024

The USD continues to be under pressure, oil prices are off, equity markets are rising while the US yields are slightly lower. The USD is trading near the lowest level of the year as the market awaits tomorrow’s the Fed’s interest rate decision. Any signs of weakness in today’s release of the US retail sales will reinforce the view that the Fed will lower rates by 50bps.

In other news. Meta (Facebook, Instagram, WhatsApp and Threads) says it’s banning several Russian State media networks alleging they use deceptive tactics to carry out influence operations and evade detection on its platforms. TikTok and the U.S. face off in court over law that could lead to a ban on the popular platform. Israel says halting Hezbollah attacks is now a war goal as officials warn of a wider operation. North Korea's top diplomat heads to Russia as military cooperation grows.

In currency markets. The Asian currencies continue to rally against the USD with the CNY 0.34%, MYR 1.02%. while the JPY strength limited to a 0.03% rise. The AUD and NZD followed the same path both rising 0.18% and 0.06% respectively. The trading currencies are moving in the opposite directions with MXN trading 0.06% lower and the ZAR dropping 0.51%.

In commodity markets. Oil prices are steady as US output concerns counter tepid Chinese demand. After hitting an all-time high yesterday, gold eased as traders await the Fed’s interest rate decision. Copper prices is up 0.21%. Wheat steadies after dropping nearly 3% as Black Sea supply fears ease. Soybean prices are flat in early trading.

Current level USD Index 100.596 Down 0.16%

The USD/CAD remains stable as the market awaits today’s Canadian CPI reading. The market expected a 2.1% YoY increase or MoM of 0.1%.

Current level USDCAD 1.3586 Up 0.16%

The EURCAD remains strong as it consolidates their recent gains ahead of both the Canadian and US Economic data as well as the upcoming Fed decisions.

Current level EURCAD 1.5127 Up 0.05%

The EUR is extending Monday’s gains as market participants are now pricing a 69% chance of an US oversize rate cut. This compared to 30% last week.

Current level EURUSD 1.1136 Up 0.07%

GBPEUR remains stable as market awaits the UK and Eurozone August inflation data set to be released tomorrow. The BoE is set to release their interest rate decision.

Current level GBPEUR 1.1865 (.8426) Up 0.04%

The GBP remains stable as it awaits the US and UK economic data and central bank interest rate decision.

Current level GBPUSD 1.3213 Up 0.04%