The USD is trading in a mixed and mostly range-bound fashion to start the North American session. The dollar is firmer against the EUR and GBP, with EURUSD and GBPUSD edging lower, while the greenback is softer against the JPY after pushing toward 2026 highs earlier and finding willing sellers on the test.
In the video above, I break down the three major currency pairs from a technical perspective, highlighting the key levels traders should be watching heading into the North American session.
Outside of FX, oil prices are pushing higher despite the U.S. announcing a 172 million-barrel Strategic Petroleum Reserve release. Ongoing tensions in the Middle East continue to underpin prices, with attacks on ships in the Strait of Hormuz keeping traders on edge and providing a floor under crude. Amena Bakr is on CNBC talking bullishly on oil prices on supply concerns. She thinks oil prices should be over $100 and $150 is not out of the question. Calls Pres. Trump's plan on insuring ships just an idea, and it would likely be very very expensive.
U.S. equity futures are pointing lower ahead of the open, with the Dow implied down about 265 points, the S&P down 31 points, and the Nasdaq down roughly 102 points. U.S. yields are marginally higher.
On the economic calendar, U.S. initial jobless claims are due at 8:30 AM ET, with expectations at 215K. The January trade balance is expected to show a deficit of $66.6B, narrowing from $70.3B last month. Housing data will also be released, with building permits expected at 1.410M and housing starts at 1.348M, both slightly below December levels.
At the same time, Canada will release building permits (expected -1.3%) and trade balance data (expected -$0.9B) at the bottom of the hour.
