HomeContributorsFundamental AnalysisUS Dollar Falls As US Political Tensions Rise After Ginsburg Death

US Dollar Falls As US Political Tensions Rise After Ginsburg Death

The price of crude oil is little changed today as traders react to the US oil rigs data released on Friday. According to Baker Hughes, the total number of active rig counts in the US fell by 1 to 179 in the previous week. This decline happened at a time when oil prices have been relatively volatile. It also came in the same week that data from OPEC and the International Energy Agency (IEA) showed that global demand could be subdued later this year. Also, data from EIA and API showed a slow rise of American inventories.

The US dollar declined against most currency pairs as traders reacted to the ongoing political situation in the United States. Over the weekend, Democrats and Republicans disagreed on the Supreme Court after the death of Ruth Ginsburg. Democrats and some key Republicans have opposed voting for a new judge ahead of the election. Separately, the dollar is falling a few days after the Fed delivered its interest rate decision. The bank left interest rates unchanged and sent signals that it will not tamper with the current rates for several more years. Also, on Friday, data showed that the leading index rose by just 1.2% in August, down from 2% in the previous month.

The Canadian dollar was little changed during the Asian session as traders react to disappointing retail sales data. On Friday, data showed that retail sales rose by just 0.6% in August. That was a sharp decline from the previous month’s increase of 22.5%. The core retail sales declined by 0.4%. Today, the currency will react to the new house price index that will come out at 12:30 GMT. Separately, the currencies market will react to a speech by Jerome Powell and the German central bank monthly report.


The EUR/USD pair is trading at 1.1857, which is slightly higher than Friday’s close. On the four-hour chart, the price is above important support shown in white. It is also slightly above the 10-day and 20-day exponential moving averages. Also, it is a few pips below the important psychological resistance at 1.1900. Therefore, the pair is likely to continue rising, albeit slowly, as bulls aim for 1.1900 and then the 1.2000 resistance.


The USD/CAD pair declined slightly during the Asian session. It is trading at 1.3178. On the hourly chart, this price is along the 20-day and 10-day EMA while the RSI has started to decline. It is slightly above the important support at 1.3133. The price is also below the triple exponential moving average (TRIX). Therefore, there is a likelihood that the pair will continue falling today as bears aim for the support of 1.3133.


The XAU/USD pair is little changed at 1952. This price is along the 25-day and 14-day moving averages. Also, its volatility, as measured by the average true range (ATR) has dropped to the lowest level in weeks. The pair has also formed an extended bullish pennant pattern, which sends a signal that the price will continue rising.

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