15.10.2019: Demand for USD could be short-lived (USDХ, CAD, EUR)

15.10.2019: Demand for USD could be short-lived (USDХ, CAD, EUR)


The US dollar is trading higher. Nevertheless, it could be bruised by weak macroeconomic data from the US. Scant details about the trade deal makes traders revise their portfolios in favor of safe haven assets. The US dollar also benefits from risk aversion, though it came under selling pressure previously. Market participants pinned hopes for a breakthrough in the trade talks between the US and China. The US dollar index asserted strength in the European trade. The index opened the North American trade with a climb to 98.52. Investors are alert to remarks of Fed’s officials and New York Fed Empire State manufacturing index. The highlight of the week is a report on retail sales. If the US factory sector stricken by the trade war infects consumer activity, the health of the US economy is set to worsen. In this context, the euro/dollar pair will rally in response. Meanwhile, the Canadian dollar is losing all gains from surprisingly strong employment. The loonie has been weighed down by declining oil prices. The long-lasting downtrend in the oil market could push the loonie to new lows. Today the USD/CAD pair is trading at near 1.3200. The lack of weighty factors keeps Brent prices hovering at the level slightly above 59 US dollars a barrel. Traders are unwilling to price in risks of disruptions in oil supplies. So, they continue monitoring developments in the trade talks between Washington and Beijing. Any twist in rhetoric will resurface fears about a slowdown in the global economy.

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