The US dollar was relatively unchanged as traders continued to reflect on US data and weekend news. On Friday, the Bureau of Labour Statistics (BLS) released important Q3 data. The economy expanded by 2.1%. This was unchanged from what data said in November. It was slightly above the second quarter’s growth of 2.0%. Personal income rose by 0.5%, which was higher than the previous 0.1%. On the downside, personal consumer expenses disappointed. The headline PCE rose by 1.5%, which was lower than the second quarter’s 2.4%. The core PCE price rose by 2.1%. The Michigan current conditions declined from 111.6 to 115.5. Later today, the market will receive important new home sales and durable goods orders data.
On Friday, Donald Trump signed two spending packages that totalled more than $1.4 trillion. The total budget will add more than $400 billion to the country’s deficit but prevent another government shutdown. The bill added billions of dollars to defence spending. It also placed new sanctions on Allseas, the Swiss company that is constructing the Nordstream 2 project. This is a $9.5 billion pipeline that will connect Germany to Russia. The company was forced to abandon the project as Germany and Russia threatened retaliation. Trump, and the US have never loved the project because they believe that it will leave Germany at the mercy of Russia. Russia is considered an ‘enemy’ in Nato.
The economic calendar will be light today. In Japan, the market will receive the leading index. This is an index that aggregates data from the other economic numbers from the country. Economists expect data to decline from 91.9 to 91.8. It has been declining after peaking at 107.9 in February 2018. In Germany, the market will receive the monthly report from the country’s central bank. This is a report that provides a look at the health of the country’s economy. In Canada, the statistics office will release the monthly GDP data.
EUR/USD
The EUR/USD pair rose slightly as the market reacted to the new conflict between the US and the European Union. The pair is trading at 1.1080, which is slightly above last week’s low of 1.1065. On the hourly chart, the price is along the middle line of the Bollinger Bands. The RSI has emerged from the oversold level of 20 to the current 40. The Average True Range has declined, which is a signal of low volatility. The pair may see some significant moves ahead of the US home sales and durable goods data.
GBP/USD
The GBP/USD pair was relatively unchanged during the Asian session. The pair is trading at 1.3011, which is slightly above last week’s low of 1.2975. The price is along the 14-day and 28-day moving averages. The RSI has remained at the neutral level of 45 while the momentum indicator has been unchanged. The pair may remain at the current levels today.
XAU/USD
The XAU/USD pair rose today as traders reacted to new tensions after the US sanctioned AllSeas. The pair reached a high of 1481, which is higher than Friday’s low of 1475. The pair has been on an upward trend this month. The current price is along the upper line of the Bollinger Bands while the RSI has been moving upwards. The pair may continue moving high to test the important level of 1485.
