A dearth of economic data on Tuesday will keep investors fixated on the latest developments concerning US-China trade negotiations. In terms of economic data, a small handful of releases are scheduled for Tuesday.
Action begins at 06:00 GMT with a report on Switzerland’s trade balance. The Swiss surplus is forecast to widen in July as export growth continues to outpace imports.
Shifting gears to the United Kingdom, the Office for National Statistics will report on public sector net borrowing at 08:30 GMT. Later in the session, the Confederation of British Industry (CBI) will release the monthly industrial trends survey for August. The headline indicator is forecast to drop to 9 from 11 the previous month.
In North America, the Canadian government will report on wholesale sales at 12:30 GMT. The category likely rose 0.8% in June, according to a median estimate of analysts. Wholesale sales jumped 1.2% the month before.
Commodity traders will also be keeping tabs on weekly crude inventory data courtesy of the American Petroleum Institute (API). The official inventory report from the US Energy Information Administration (EIA) is due the following morning.
Last week, the White House confirmed that China will send a trade envoy to Washington before the end of the month to kickstart negotiations. On Friday, it was also revealed that both sides are plotting a roadmap to resolve their trade dispute before a multinational summit in November involving US President Donald Trump and Chinese counterpart Xi Jinping.
USD/CAD
The North American cross continued to backpedal on Monday, as rebounding oil prices and a weaker greenback hoisted the loonie following weeks of volatility. The USD/CAD exchange rate now sits at 1.3034, with immediate support located at the psychological 1.3000 handle. Below that level, the next cluster of support is located at 1.2975. A meaningful recovery attempt will likely run into resistance at 1.3100, followed by 1.3140.
EUR/USD
Europe’s common currency rallied on Monday to a fresh 10-day high, as a weaker dollar magnified the performance of competitor currencies. The EUR/USD exchange rate is back trading above 1.1500. At the time of writing, the pair had gained 0.2% to 1.1516. At present values, the pair faces immediate resistance at 1.1615, the high from 9 August. On the opposite side of the ledger, immediate support is located at 1.1395.
GBP/USD
Like other dollar pairs, cable spiked on Tuesday and returned above 1.2800 for the first time in six days. At the time of writing, GBP/USD had gained another 0.2% to 1.2824. The pair is testing the 1.2825-region, and a meaningful break higher could send prices toward 1.2900 in the short term.
