Dollar Higher After Weak ZEW Hits Euro

The dollar is higher across the board this morning although still remains well within recent ranges. The main catalyst for the move was a weaker than expected print from the German ZEW Economic Sentiment numbers last night, this led to a decent 50 pip drop in the Euro and helped the Dxy to continue it’s move away from it’s recent lows around 93.00.

Elsewhere, we saw strong Core retail sales numbers out in Canada which has kept the Cad well supported against the dollar and the crosses.

We are still seeing relatively quiet trading conditions across most sessions with the northern hemisphere summer holidays keeping volatility low and the currencies in their ranges. We’ve still got another couple of weeks of these conditions ahead of us and traders will be adjusting their risk parameters and trading strategies accordingly. The Jackson Hole Symposium is due at the end of the week but keen observers will be expected any policy changes proposed to come into affect over the course of weeks and months rather than from anything said either during or immediately after the event.

Looking at today’s sessions and it’s very quiet through all the trading sessions in terms of fundamental economic releases, the main event for traders will be when ECB President Draghi speaks during the London session, however, due to the timing of the event and it’s nature – opening remarks at an Economic Sciences Meeting, we’re not expecting it to set the world on fire.

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