Daily Forex Fundamental Analysis – Aug 28, 2017

Stock market
The US dollar took a hit after the Jackson Hole speeches as Yellen expressed some concerns about inflation, downplaying hopes of a Fed rate hike in September. Headline durable goods orders came in weaker than expected at a 6.8% loss versus the projected 6.0% drop but the core reading came in slightly better than expected at 0.5%. Goods trade balance and preliminary wholesale inventories are due next.
The euro surged across the board after Draghi refrained from dropping cautious remarks during his Jackson Hole speech. German final GDP and import prices also came in line with expectations. Data on private loans and M3 money supply are due today but these aren’t likely to have a strong impact on euro action.
The pound was once again weighed down by Brexit concerns are talks are set to resume this week. There were no reports out of the UK economy on Friday while today has an empty docket again since banks are closed for the holiday.
The franc had a mixed run as it reacted mostly to currency-specific events rather than establishing its own direction. There are still no reports due from the Swiss economy today so market sentiment could push franc pairs around or consolidation could be in play.
The yen regained some ground as it took advantage of dollar weakness after the Jackson Hole Symposium. Data from Japan turned out mixed, with the national core CPI coming in line with estimates of 0.5% and the Tokyo core CPI beating expectations at 0.4%. There are no reports due from Japan today so quiet trading could be in order.
Commodity Currencies (AUD, NZD, CAD)
The comdolls had a mixed run as the gang was able to benefit from dollar weakness but were still vulnerable to euro strength and risk aversion. There were no reports out of the comdoll economies then and none are due today so market sentiment could be the main driver of price action.
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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.