Daily Forex Fundamental Analysis – Aug 30, 2017

0
26
USD
The US dollar lost ground upon hearing news of North Korea’s missile launch, worrying that a nuclear strike on Guam isn’t far off. However, fears soon faded and equities rebounded, allowing the currency to recover as well. It also helped that the CB consumer confidence index turned out stronger than expected as it rose from 120 to 122.9, higher than the consensus at 120.9. The preliminary GDP and ADP non-farm employment change reading are up next.
EUR
The euro was able to benefit from Brexit concerns and the pickup in risk aversion. Economic data from the region came in line with estimates, keeping hopes of ECB tapering in place. The German GfK consumer climate index rose from 10.8 to 10.9 while French consumer spending rose by 0.7% as expected. German and Spanish flash CPI readings are due next.
GBP
The pound was the weakest of the bunch as Brexit talks didn’t seem to go in favor of the UK panel. Data was also weaker than expected since Nationwide reported a 0.1% drop in house prices versus the projected flat reading. The BRC shop price index, along with net lending to individuals and mortgage approvals data, are on the docket.
CHF
The franc was able to rake in most of the safe-haven flows and hold on to its lead throughout the day. There were no reports out of the Swiss economy then while today has the KOF economic barometer and Credit Suisse economic expectations index lined up.
JPY
The yen rallied when risk aversion kicked in after news of North Korea’s missile launch broke out but soon returned its gains when markets calmed down. Japanese household spending sank 0.2% instead of posting the projected 0.8% gain, much weaker than the earlier 2.3% increase. The retail sales report is due next and a slowdown from 2.2% to 1.1% is eyed.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was also one of the weakest performers of the day as it was bogged down by falling oil prices on tropical storm Harvey and risk-off flows. Australian new home sales fell by 3.7%, following the earlier 6.9% slide. New Zealand’s building consents, Australia’s building approvals and construction work done are lined up next. RBNZ head Wheeler also has a speech due and the EIA crude oil inventories will be reported.
SHARE
Previous articleGBPJPY Forex Technical Analysis – Aug 30, 2017
Next articleCanna Broadcast Media (OTCMKTS:CBMJ) Secures Funding for Acquisition
With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.