Daily FX Trading Review: USD Advances to GBP and EUR – Aug 27, 2014

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Daily FX Trading Review: USD Advances to GBP and EUR - Aug 27, 2014

The US dollar had a mixed performance as it extended its FX trading gains to the euro and the pound but retreated to the Canadian dollar. Data from the US economy was mostly stronger than expected, with only the core durable goods orders figure coming in short of expectations at a 0.8% decline instead of the estimated 0.5% uptick.

Headline durable goods orders showed a 22.6% jump versus the estimated 7.8% gain while CB consumer confidence improved from 90.3 to 92.4. The Richmond manufacturing index climbed from 7 to 12, outpacing the consensus at 8. Only crude oil inventories data is due from the US economy today.

The euro broke below its FX trading consolidation to the dollar and traded much lower, even though there were no major reports released from the euro zone. For today, German GfK consumer climate data is due and the index could fall from 9.0 to 8.9, with a weaker than expected reading likely to push the euro lower. Also due today is the German import prices report, which could mark a 0.1% decline in prices.

FX Trading Fundamentals

After recently closing its weekend gap, the pound resumed its FX trading selloff to the dollar, as BBA mortgage approvals data came in below expectations. The report showed a drop from 43.2K to 42.8K instead of the projected improvement to 44.2K, indicating that the UK housing sector is in a slowdown. There are no reports due from the UK economy today.

The franc took its cue from the euro and weakened to the dollar once more, even though there were no reports released from Switzerland. For today, the UBS consumption indicator might have a say in franc FX trading movement, with the index expected to dip from the previous 2.06 reading.

The yen managed to keep its losses contained in recent FX trading, except against the commodity currencies. There were no reports released from Japan then and none are due today, leaving yen pairs at the mercy of market sentiment.

The comdolls had a good run in recent trading, as risk sentiment made small improvements. Earlier today though, Australia’s construction work done came in below expectations at a decline of 1.2% versus the estimated 0.4% downtick. To top it off, the previous figure was downgraded to a 0.4% decline. No other reports are due from the comdoll economies today.

To contact the reporter of the story: James Brennan at james@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.