Home Daily Commentaries Market participants turn their attention to Osaka

Market participants turn their attention to Osaka

Daily Currency Update

The market focus is undoubtedly on the G-20 meeting in Osaka, Japan. The meeting started yesterday with President Donald Trump already meeting with several world leaders. The main event will be the meeting between Chinese President Xi Jinping and President Trump. Behind the scenes, US Trade Representative Robert Lighthizer and China top negotiator Vice Premier Liu He meet today, signaling to investors that the two sides are looking to continue to negotiate and make progress for the two trading titans to find a resolution to their trade war. Otherwise, it is a relatively muted session for other major currencies, including the Greenback. The US dollar had the opportunity to gain some traction ahead of the G20 meetings but was ultimately left where it started after US GDP came in as expected at 3.1%. There was some support for U.S. equities, however, as reports of a positive outcome at the G20 meeting circulated. The Dow, S&P 500, and Nasdaq are in the positive on the day as risk assets proved to be well bought ahead of the all-important G20 meeting.

Key Movers

Commodities have been having a good month as well; crude oil is having its best month since January moving higher from falling US stockpile and Iran tensions in the middle east. OPEC meets on Monday and if the cartel can agree on extending their production cut program oil could rally further. Gold has found its luster this month as well and had its biggest monthly gain in over three years testing the 1438.0 a once level this week and currently holds at 1409.00, resistance is seen at 1430.00 to sustain the gold rally.

Expected Ranges

  • CAD/USD: 1.1360 - 1.1393 ▲
  • USD/EUR: 1.2665 - 1.2729 ▲
  • USD/GBP: 1.3068 - 1.3114 ▼
  • AUD/USD: 0.6998 - 0.7017 ▲
  • NZD/USD: 0.6690 - 0.6721 ▲