The US dollar continues to rally after last week’s surprise Trump victory and is now touching its year-to-date highs as investors anticipate more federal spending under a Trump presidency. Investors are also still expecting Fed Chair Janet Yellen to raise interest rates at the Federal Reserve’s meeting in December, which is lifting the dollar as well.
Overseas, the euro is trading lower against a stronger US dollar despite Italy’s consumer inflation and the broader Eurozone’s industrial production results meeting expectations. Investors are also awaiting this morning’s speech from ECB President Draghi to hear his outlook for the Eurozone.
The pound is also sliding against a stronger US dollar as investors anticipate today’s speech from UK Prime Minister Theresa May, which may tell us more details on the UK’s 2017 Brexit plans.
Elsewhere, the Australian dollar is trading mostly flat as we wait for tonight’s economic forecasts and the Reserve Bank of Australia’s meeting minutes. The Canadian dollar is dipping as oil prices fall below $43.50 per barrel. The Japanese yen is back to weakening against the rising US dollar as the latest GDP data showed Japan’s growth was still too weak to boost inflation.
EURUSD: The euro is down against a stronger US dollar despite Eurozone industrial production meeting expectations.
GBPUSD: The pound is also trading lower against a stronger greenback as investors await a speech from PM Theresa May.
AUDUSD: The Aussie dollar is up slightly as investors await tonight’s economic forecasts.
USDCAD: The Canadian dollar is sliding along with oil prices.