img CDN
img AUS
img NZ
img US
Call us now: 1.844.363.7297
imgOnline Dealing Login

Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

USD Continues to Struggle Against Major Currencies; Oil Extends Gains for Sixth Day in a Row

Published June 29, 2017
  • The US dollar continues to struggle as investors await further signs from the Federal Reserve regarding future interest rate hikes; readings on US GDP this morning showed that the American economy grew faster than expected, however, the market still lacks faith that the Fed will raise interest rates again this year
  • The US dollar index is showing broad weakness this morning and has moved to its lowest level since October 2016; the index measures the strength of the US dollar against a major basket of six major currencies
  • USD/CAD is near 4-month lows and is hovering just above the psychologically important 1.3000 level; recent weakness in the US dollar and better prospects for oil prices have bolstered the loonie’s strength
  • Oil prices rose for a sixth session in a row and reached two week highs as investors shrugged off an increase US oil stockpiles; prices have moved up nearly 7 percent after falling to 10 month lows earlier this month
  • Data from the US Energy Information Administration on Wednesday revealed that US domestic crude production fell by 100,000 barrels per day to 9.25 million barrels for domestic daily output in the week ending June 23; this decline marked the largest drop in daily production since July 2016
  • The euro and pound are higher this morning after hawkish comments from European Central Bank President Mario Draghi and Bank of England Chief Economist Andy Haldane; both central bankers indicated that their respective economies are ready for tighter monetary policy