The euro jumped out to early gains against both the dollar and in the crosses during the overnight Asian session. This type of price action was seen last week when the euro came off of its lowest level in 10-weeks.
EUR – CPI Flash Estimate y/y – 09:00 GMT
Expectations: 2.8%. Previous: 2.8%.
The euro jumped out to early gains versus both the dollar and in the crosses during the overnight Asian session following a WSJ article highlighting Germany’s willingness to compromise on a rescheduling of Greek sovereign debt. An uptrend of euro zone CPI would increase the momentum behind today’s gains as well as growing expectations for an interest rate hike in July by the ECB. Initial resistance for the EUR/USD is found at the overnight high of 1.4405 followed by 1.4590.
CAD – BOC Overnight Rate – 13:00 GMT
Expectations: 1.00%. Previous: 1.00%.
No change is expected in Canadian interest rates but traders will be looking for hawkish talk by the BOC in the accompanying rate statement following yesterday’s better than expected GDP data. The last policy statement by the BOC was more dovish than expected and helped to weaken the Loonie. The USD/CAD continues to trade near the 100-day moving average at 0.9755 and a move above 0.9815 could open the door for gains towards 0.9970, a level where the mid-March high coincides with the 200-day moving average. Hawkish language could trigger CAD strength and the USD/CAD cold fall to the 0.9650-40 area.
USD – CB Consumer Confidence – 14:00 GMT
Expectations: 66.3. Previous: 65.4.
A slight uptick in US consumer confidence data may actually benefit the “risk-on” trade and feed into dollar selling, potentially a positive for spot crude oil prices. Resistance is found at $102.25 from the current consolidation pattern and a break above this level may add another $2.25 to the price.
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