Greenback enters Friday morning flat

Key Movers

EUR/USD’s spiral stopped around the 1.05 level yesterday after Powell’s comments. This is a key support level for the pair and analysts suggest that it will not be easily broken, especially after the pair's harsh decline in the past few weeks.

The pound sterling has been sliding against the USD as well, pausing at the key support level of 1.23 and then falling lower to 1.2145 at the time of writing. Markets will be looking toward the claimant counts data, which shows the change in the number of people claiming jobless benefits, set to be released on Tuesday. This data release gives an early gauge of the stat of the UK’s labor market.

The USD/JPY pair is edging lower towards the 150 mark as market participants keep their eyes on a possible interference by the Bank of Japan (BoJ) should the Yen continue its downward trend. As the USD has been making gains on treasury yields, the Japanese Government Bonds (JGB) have also edged up, testing how far the BoJ will allow them to go without involvement.

The Canadian dollar is experiencing a mild rebound today as retail sales in August fell -0.1%. This was in line with market expectations and early September data pointed to no change in sales numbers. Another support factor for the commodity-linked Loonie is the rising oil prices which continue to hold onto gains made yesterday as geopolitical pressures continue to lift prices. Ongoing turmoil in the Middle East is weighing on supply concerns driving West Texas Intermediate (WTI) crude oil prices back over $90 a barrel from the $87 level earlier in the week.