Daily Market Update

Dollar Slips as Global Equities Continue Recovery

June 27, 2022

The U.S. dollar is trading mostly weaker again this morning as last week’s risk rally looks to continue today.

Overview

Global stocks are solidly in the green and U.S. futures point to modest gains at the open.  American shares rebounded significantly last week, causing the dollar to come off recent highs.  For example, the S&P popped 6.5% higher last week.  However, the index is still down 18% this calendar year.The dollar is gaining slightly in early trading on the back of strong economic data.  Durable goods orders rose 0.7%, beating estimates of 0.1.  The month prior was revised downward by 0.1%, however.  Orders excluding transportation also beat expectations. Later, pending home sales will hit the tape at 10 a.m.Looking ahead, US GDP figures will be released on Wednesday morning.  That afternoon, Federal Reserve Chairman Jerome Powell will give a speech at the European Central Bank forum.

 

What to Watch Today…

  • ECB President Lagarde speaks at 1:30 p.m. EST

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EUR

The Euro gained during the second half of the last week on the back of a risk rally.  The Euro found more support initially overnight but has since given back much of those gains. The European Centra Bank forum starts in Sintra Portugal this week and merits a watchful eye.  ECB President Christine Lagarde will speak at 1:30 p.m. EST at the event.  EUR/USD is likely to stay in familiar ranges ahead of the opening comments from Lagarde.

 

CAD

USD/CAD is trading in choppy ranges this morning but is mostly unchanged from Friday’s close.  The loonie initially gained overnight as the price of oil gently drifted higher, but the Canadian dollar has since given back those gains.  WTI is up 0.4 percent and sits at $108 a barrel. Data this morning showed that Canadian consumer confidence fell for a ninth straight week.  The gauge fell to 48.3 last week, the lowest since July 2020 at the height of the pandemic. The Nanos Research survey is considered second-tier data but we highlight it today because it’s an ominous sign for the Canadian economy.

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