Daily Forex Fundamental Analysis – Dec 6, 2017

The dollar managed to snag some wins even after data was weaker than expected. The ISM non-manufacturing PMI slipped from 60.1 to 57.4 versus the projected 59.2 figure, with hiring and prices indicating declines. The ADP non-farm employment change reading is due next and could show a fall from 235K to 189K.
The euro was in a weak spot against most of its counterparts as another batch of medium-tier data showed misses. Retail sales also turned out weaker than expected with a 1.1% slide versus the estimated 0.6% fall. Only German factory orders and the region’s retail PMI are due next.
The pound gave up some of its recent wins as more Brexit concerns lingered. Word has it that PM May could be pushed to take a softer Brexit stance as she failed to come up with a deal with the EU in the latest set of meetings. It didn’t help that UK services PMI disappointed with a drop from 55.6 to 53.8. There are no reports due from the UK today so the attention is on the EU assessment of Brexit goals.
The franc also chalked up some gains as risk aversion peeked back in the markets. There were no reports out of the Swiss economy yesterday while today has the CPI due. A flat reading is eyed, following the earlier 0.1% uptick, and upbeat results could be bullish for the franc.
The Japanese yen was able to end in positive territory thanks to risk-off flows. There were no major reports out of Japan yesterday and none are due today, which means that bond yields and market sentiment could keep pushing yen pairs around.
Commodity Currencies (AUD, NZD, CAD)
The Aussie had a good run after the RBA statement was less dovish than before but returned some of its wins earlier today as the GDP disappointed. The economy grew 0.6% versus the 0.7% consensus while the previous reading was upgraded from 0.8% to 0.9%. Canada reported a smaller than expected deficit and the BOC statement is lined up next.
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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.