USD

U.S. stocks are set for a quiet open with little change on Monday ahead of a week packed with economic data and earnings from big tech. Trade policy developments also remain in focus. Last week, stocks rallied in hopes of a de-escalation in the US-China trade war, but there is still a lack of clarity. This week, big tech earnings, US GDP, core PCE, and NFP are all in focus.

U.S. stocks are broadly unchanged amid ongoing China-U.S. trade uncertainty. However, a slight tone softening from both sides means stocks are set to rise across the week. Alphabet is rising after its quarterly earnings beat forecasts.

U.S. stock prices are mixed as China dashed any optimism over potential progress in trade relations and a de-escalation of the U.S.-China trade war, saying no talks with Washington are taking place. Alphabet is falling ahead of earnings after the close.

The U.S. Dollar is bouncing from a big spot of long-term support but the question now is whether USD/JPY bulls and EUR/USD bears can continue to run. Gold is pulling back from a test at 3500 and Bitcoin has broken out of a falling wedge formation.

US Dollar is poised to mark a fifth-weekly decline with the index now testing critical support at multi-year lows. Battle lines drawn on the USD weekly technical chart.

USD bears have been in control for the past couple months and the currency is currently showing oversold conditions on the weekly chart ahead of two large drivers.

U.S. stock indices are falling on Wednesday, with Nvidia acting as a drag after US controls on chip exports to China, in the latest development of the U.S.-China trade war. US retail sales beat forecasts +1.4% MoM. Federal Reserve Chair Jerome Powell will speak later.

It’s been a big week across markets and there are still several macro setups of interest as we approach the Thursday ECB meeting.

U.S. stocks are set to open modestly lower as sentiment remains fragile, with investors waiting for more corporate earnings and clarification about Trump's trade tariffs. Yesterday, Trump said he was considering temporary exemptions on vehicle import tariffs. This came after some electronic imports from China were also excluded. However, chips and pharmaceuticals could still be hit.

With the BOC on alert for higher inflation, with key CPI metrics already curling higher, USD/CAD traders will keep a close eye on the latest CPI figures to drop on Tuesday. The US dollar index and USD/CAD also look set for at least a small bounce over the near term.

USD went oversold on the weekly for only the second time in the past six years, and last year’s instance led to a massive reversal a couple months later. But context is very important here.