The US dollar index rose near 11-month high at 81.51 and then retraced slightly, the greenback has been broadly stronger against its major peers. Against the Japanese Yen, the greenback inched above the longer term 102.80/101.09 range but returned back to that level. We would be watching the reaction of the USDJPY there for further clues. Today we will be focusing on the US Jobless Claims.
The common currency dipped to 9-month low against the US dollar at 1.3370 but then retraced to 1.3400 amid covering of short positions and the Janet’s comments on economic activity. Concerning Euro-zone we will watch the CPI data and Unemployment Rate. There are still expectations that the ECB would increase monetary stimulus while the Fed expectations for rate hike stay firm after the increasing GDP in the 2nd quarter.
The Canadian has been one of the biggest losers against the greenback with the USDCAD rising to 1.0915 in recent trading. That is a big retracement threatening the downtrend status. Technical oscillators are overbought and that increase expectations for downside revival. On the data front Canadian GDP is included for today concerning May and is expected to be reported at 2.3% up from previous at 2.1%.
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