Daily Forex Fundamental Analysis – Aug 22, 2017

The dollar edged slightly lower at the start of the week as trader reacted to Bannon’s resignation. This reminded market watchers of the internal conflict in Washington and how this could derail the fiscal reform agenda. Also, resurfacing tensions with North Korea dampened the dollar’s gains upon the start of the joint military drills between the US and South Korea. There were no reports out of the US yesterday while today has HPI and the Richmond manufacturing index.
The euro was able to advance against some of its peers as traders are pricing in taper remarks from Draghi in the upcoming Jackson Hole Symposium. There were no major reports out of the region yesterday while today has the German ZEW economic sentiment figure lined up. Analysts are expecting to see a dip from 17.5 to 14.8. The region’s index could fall from 35.6 to 34.2.
The pound struggled to hold its ground on the lack of top-tier UK data. The Rightmove HPI showed a 0.9% drop in house prices versus the earlier 0.1% uptick. The CBI industrial order expectations index is due next and a fall from 10 to 8 is eyed.
The franc was able to rake in some gains on returning risk aversion due to the start of the military exercises between the US and South Korea. There were no reports out of the Swiss economy yesterday while today has the trade balance on the docket. Analysts are expecting to see a wider surplus of 2.88 billion CHF compared to the earlier 2.81 billion CHF.
The yen also caught some wins on weakening dollar demand and a pickup in risk aversion. Japan’s all industries activity index logged in a 0.4% uptick versus the projected 0.5% gain. There are no reports due from the Japanese economy today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were in a weak spot due to the return in risk aversion, although it has been reported that OPEC output likely dropped while compliance reached 94%. Canadian wholesale sales saw a 0.5% drop versus the projected 0.6% gain.
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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.