EUR/USD remains in 1.1575 - 1.1650 range, though euro had an overall positive outlook on Monday coming from optimistic comments from ECB Constancio. GBP/USD had a neutral day but we are expecting it to lose some ground. USD/CAD completed its downward correction and returned to rising mode.
USD Significantly Higher While GBP Traders Worry for U.K. Political Stability
The U.S. dollar ended the first day of the week higher against almost all the G10 currencies. There were no economic updates for the U.S. yesterday apart of the weaker than expected monthly budget statement, thus, the dollar’s positive outlook is attributed to worries over political stability in the U.K. regarding Brexit negotiations and the expectation of the tax reform plan in the U.S. The U.S. President Donald Trump is very confident for the long-awaited tax reform. Going to the economic indicators, the monthly budget statement fell to a deficit of $63B in October against forecasts of $50B deficit from a positive $8B before. The U.K. headline inflation rate that is coming out later in the European morning today will be monitored by GBP traders. Consumer prices are predicted to have risen by 3.1% in October from 3.0% in September, year-over-year. The retail price index and the PPI also for October will be published as well.
Read the full financial markets daily report on JFD Research.