Previous Week
US dollar continues to trade lower for 2nd consecutive week and lost more than 50 pips from close of 98.84. The decline was mainly due to the worst US economic data and easing trade tension between US-China. It is currently trading around 98.40.
The US has agreed to suspend its next tariff hike on Chinese imports of $250 billion and China to buy American farm products such as Soybean and Pork worth $40-$50 billion. On the data front, US CPI came slightly weaker than expected and Fed meeting minutes confirm the chance of rate cut in the next policy decision.
The precious metal lost its shine on easing geopolitical uncertainty and rising bond yield. It is hovering around $1480 level.
The Brent crude oil prices have halted its 2-1/2 week of weakness and shown a minor recovery of more than $3. It is currently trading around $59.70.
US 10 year bond yield was the best performer previous week and jumped more than 15% from low of 1.502%. It is currently trading at 1.518%. The yield curve inversion between US 10 year and 2-year has gone and spread widened to 14 bps from 2 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.1085
Near term support- 1.100/1.0900
Near term resistance – 1.1085/1.1140
USDJPY:
Major trend reversal level- 109.30
Near term support- 107.80/106.40
Near term resistance – 108.65/109.31
USDCHF
Major trend reversal level- 1.0030
Near term support- 0.9900/0.97700
Near term resistance – 1.0030/10060
USDCAD
Major trend reversal level- 1.3135
Near term support- 1.3135/1.3070
Near term resistance – 1.3235/1.3300
Gold
Major trend reversal level- $1460
Near term support- $1480/$1460
Near term resistance – $1525/$1555
WTI Crude
Major trend reversal level- $57.05
Near term support- $50/$46
Near term resistance – $55.55/$57.05
Major Economic events for the week
US retail sales- Wednesday (12:30 GMT)
Canadian CPI m/m - Wednesday (12:30 PM GMT)
Canada Manufacturing sales - Thursday (12:30 GMT)
US Philly Fed Manufacturing Index -Thursday (12:30 PM GMT)


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