Europe Summary and Highlights 20 Aug
Dollar continues to slip after yesterday's breaks
EUR/USD testing 1.17 and GBP/USD 1.3650; USD/CAD retracement continues
SEK slips after cautious hold from Riksbank
Europe
The dollar remains on the back foot, as EUR/USD squeezed up to be testing the 1.17~ next resistance mark. USD/CAD also making further downward progress (mkt very short CAD, trade deal hopes, higher oil, dollar weak) down to 1.3768 after taking out 1.38. Weak dollar, risk support, and technical also seeing cable still doing well, stretching for 1.3650.
SEK a slight exception, underperforming as the Riksbank left rates unchanged and struck a slightly cautious note (probability of a rate hike later in the year remains but 'considerable uncertainty and developments call for vigilance'). Market pricing of a hike by year end cut back and now around 70% by Dec.
Oil prices continue to leak higher, as US threatens economic consequences for any Iran support as it doubles down on the long-game economic squeeze approach and so ongoing standoff. Brent +$2 to $94. S&P and Nasdaq close to unchanged on the session. Minor corrections for gold/silver after yesterday’s surges.