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US Dollar Little Changed amid Quiet Release Schedule

H.S. Borji
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US Dollar Little Changed amid Quiet Release Schedule

The US dollar was little changed Monday, as a dearth of economic data from the United States kept trade subdued ahead of an active week headlined by international data.

The US dollar index – a broad performance measure of the greenback – declined 0.07 percent to 80.21. The dollar ended the previous week on a high note after the Labor Department said US employers added 282,000 nonfarm jobs in June, as the unemployment rate dipped from 6.3 percent to 6.1 percent.

The United States had no economic data to report following the Independence Day long weekend.

On Tuesday the Board of Governors of the Federal Reserve System will report on consumer credit for the month of May.

On Thursday the Commerce Department will report on May wholesale inventories.
The Financial Management Service will close out the week with last month’s monthly budget statement.

The USDCAD had an active session after Canada produced a steady stream of market news. Canadian building permits surged 13.8 percent in May, Statistics Canada reported today. However, weak business PMI courtesy of the Richard Ivey School of Business and a subdued business outlook from the Bank of Canada kept the loonie in check.

The USDCAD recovered from an intraday low of 1.0632, climbing 0.11 percent to 1.0665. The pair is testing initial resistance at 1.0667. Support is likely found at 1.0632.

The EURUSD advanced slightly Monday amid mixed Eurozone data. German industrial production declined 1.8 percent in May, well below forecasts calling for a 0.3 percent gain.

Separately, Sentix reported a sharp rebound in Eurozone investor confidence in July, led by stronger economic expectations. The investor confidence indicator advanced from 8.5 to 10.1, beating forecasts that called for a drop to 7.5.
The EURUSD advanced 0.09 percent to 1.3607. The trend line shows initial support at 1.3583 and resistance at 1.3610.

The USDJPY declined ahead of Japanese trade data. The pair fell below 102.00 in the European session and remained subdued in North America. The USDJPY declined 0.24 percent to 101.83. The trend line shows initial support at 101.80 and resistance at 102.25.

On Wednesday Japan will release headline industry data, including machinery orders and the tertiary industry index.

The Bank of Japan will issue a rate decision Thursday. No change to the benchmark lending rate is expected at this time.

The GBPUSD edged lower ahead of an active Tuesday session for the British pound. On Tuesday the Office for National Statistics will report on industrial production and manufacturing production for May. The National Institute of Economic and Social Research will also release its latest three-month GDP estimate for the UK economy.

The GBPUSD was trading at 1.7130, declining 0.16 percent. The pair is testing initial support at 1.7133. On the upside, resistance is likely found at 1.7183.

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