Summary:

• USD falls to its lowest level since Dec 2014
• Comments from Mnuchin and Ross weigh on the Buck
• GBPUSD hits 1.42; USDCAD looks to break lower

We earlier noted that the US Dollar was coming under some selling pressure and this has grown throughout the day with some large moves seen in many crosses. The world’s reserve currency has been trending lower for some time now with comments today from the US Treasury secretary and the Commerce secretary adding to the declines. 

 The USD index has dropped to trade not far from previous resistance around the 89 handle. This could be an area to watch for possible support. Source: xStation

Steve Mnuchin gave a press briefing upon arriving at the World Economic Forum in Davos, with the most noteworthy comments being that he welcomed the USD depreciation. The Buck has fallen more than 11% since Trump’s inauguration and this sort of rhetoric from the Treasury secretary will do little to reverse that. 

In addition Commerce secretary Wilbur Ross has made some interesting comments on trade, saying that he believed the US had been engaged n a trade war for “quite a little while.” These remarks are making the news wires because they seem to contrast Trump’s public stance and has fueled speculation of a fall-out between the two.

 The GBPUSD has enjoyed a strong move higher lately and is aiming for its 6th consecutive weekly gain. Price is now trading back around levels last seen in June 2016 – when the pair plummeted on the Brexit vote. Source: xStation

Another market making waves today is the USDCAD, which has fallen to its lowest level in 4 months. Pirce has consolidated in recent weeks around the 1.2405 level but a clean break seems to have been made today. Last September’s lows of 1.2062 could now be set for a retest.

USDCAD has hit its lowest level since September today and could be a pair to keep an eye on going forward with several potentially key ecnomic releases due out before the weekend. Source: xStation

There’s several potentially key economic releases for this market before the week is out with Canadian retail sales due out tomorrow at 1:30 before the latest CPI figures are released at the same time the following day. Also due out at 1:30 on Friday is the US GDP number and core durable goods orders. Should this data flow come in positive for CAD and/or negative for the USD then further declines may lie ahead.