Home Daily Commentaries USD trading volumes light due to Martin Luther King Jr. Day

USD trading volumes light due to Martin Luther King Jr. Day

Daily Currency Update

The USD is holding onto the positions it had against the majority of Majors to start the week. The trading volumes will be light today as all US stock markets and Banks are closed today in observance of Martin Luther King Jr Day.

“The Time is Always Right to do what is Right”
-Dr. Martin Luther King Jr.

Key Movers

In APAC trading overnight, the Aussie Dollar got a boost as China re-opens their economy and prospects improve for global growth.  As China is Australia’s biggest customer for raw materials and metals, this bodes well for the AUD going forward.  Producer prices in Japan were up more than expected, showing a 10.2% YoY increase, higher that the 9.5% forecasted. This could lead to further tightening from the Bank of Japan when they meet on Wednesday.

The prospect of further rate hikes in the Eurozone saw the Euro reach a fresh 9 month high against the USD in the overnight session. A number of pundits, including the head of the Finnish Central Bank have come out in favor of further rate hikes in Europe to combat the near 10% inflation that continues to stifle economies inside the trading zone.

The Canadian dollar is range bound against the USD this morning as market closures in the US are limiting trading volumes in North America today. Oil touched over $80 a barrel overnight before retreating to the $79 range. Key data this week for the dollar will be tomorrow’s CPI Inflation which is expected to come out at 6.4%, down from 6.9% last month.  A big reduction in the inflation number could take pressure off the Bank of Canada when it comes to further rate hikes at its next meeting.

Expected Ranges

  • EUR/USD: 1.0802 - 1.0873 ▲
  • GBP/USD: 1.2175 - 1.2288 ▲
  • AUD/USD: 0.6945 - 0.7018 ▲
  • USD/CAD: 1.3354 - 1.3416 ▼