DAILY FX WRAP: USD recovers throughout the day, while CAD remains firm after retail sales.

 

USD has been on the front foot throughout the session against its major counterparts. The move in the greenback has largely been on the back of a modest recovery as opposed any fundamental basis with markets gearing up ahead of Draghi’s speech tomorrow and Yellen on Friday.

CAD is a touch higher after retails sales ex auto printed firmly above analyst estimates (0.7% vs. Exp. 0.0%). Canadian data remains strong enough to keep the BoC on track to further tighten monetary policy. As it stands, OIS markets are pricing in around 20bps of tightening for the October meeting.

EUR: Early morning breach above 1.18 had been short-lived after running into resistance at 1.1825. A soft German ZEW survey kept the currency pressured to eye 1.1750, while near-term support resides at 1.17, which would mark a full retracement of Monday’s rally.

22 Aug 2017 - 16:06- Research Sheet- Source: Newswires

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