Market Overview - Page 602

The news broke overnight that Steve Mnuchin had urged the President to give Canada an exemption from the Steel and Aluminium tariffs. USDCAD had already sold off from its high of 1.30657 but extended the move and is now trading.

At 07:55 GMT, German Markit Services PMI (May) will be out with an expected headline number of 52.1 against 52.1 previously. After reaching a multi-year high in February at 57.3, this data has come back into its range under 56.0..

Yesterday’s session was quite after a pickup in volatility last week and there has been little in the way of movement overnight. This is despite some negative headlines that possibly sapped some of the market strength over the last 24.

The new week begins much the same as the old one ended, with markets in risk on mode, equities markets higher, while gold moved down. The USD is weaker against all currencies expect the yen. The mood is mainly positive.

The USDCAD pair has returned to the previously broken red trend line and is consolidating in the area around 1.28363. A break higher targets today’s high at 1.28641, followed by 1.28940 and the area of resistance containing the recent highs,.