The overriding theme on the currency market since the start of the year is without a doubt the generalized decline in the U.S. dollar. Yesterday was definitely in keeping with that trend until President Donald Trump tempered the remarks by his Treasury Secretary to the effect that a weak dollar would be beneficial for the country’s economy. Yesterday afternoon, the president stated that he would like to see a stronger U.S. dollar. Truly a challenge to follow.
These comments triggered a fast rebound in the USD yesterday, particularly versus the euro against which the greenback had seen significant losses. Against the loonie, the rally was more muted.
Today, a number of economic indicators are on the agenda in the United States (GDP and Durable Goods Orders) and in Canada (inflation). Perhaps positive U.S. economic news can slow down the slide in the greenback.
A pointer for USD sellers: Don’t “fight” against the bearish trend and leave orders lying around 100 to 150 points above the market in order to take advantage of a rebound.
Julien Duquette
Range of the day: 1.2270 – 1.2400