Daily Forex Fundamental Analysis – Feb 27, 2018

Dollars on market chart
The US dollar was in a weak spot as equities started the week on a positive note and traders seem wary of a cautious tone from new Fed Chair Powell’s testimony. US new home sales also came in weaker than expected with a surprise fall. CB consumer confidence and US durable goods orders data are also due today.
The euro managed to score some gains when ECB head Draghi offered a few more optimistic remarks on the economy. He acknowledged that euro zone growth has been robust and that the labor market could see more improvements. However, he also warned that financial market volatility and currency movements warrant close monitoring. Flash CPI readings from Germany and Spain are due today and gains are eyed.
The pound was able to catch a bid as leaders continued to talk about a potential trade agreement with the EU even after Brexit. UK Labour leader Corbyn said that the government wants to negotiate a new customs union that could preserve a tariff-free arrangement. There are no reports due from the UK today so the focus could stay on Brexit headlines.
The franc gave up a bit of ground as risk appetite was in play. There were no reports out of the Swiss economy then and none are due today, which suggests that the franc could take its cue from sentiment or euro movements.
The yen is also in a weak spot owing to improving risk sentiment. The BOJ core CPI is due next and a dip from 0.7% to 0.6% is eyed, which would lower expectations of the BOJ withdrawing stimulus anytime soon. Other than that, sentiment and dollar movements could push yen pairs around for the rest of the day.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was one of the weaker performers as falling crude oil and NAFTA jitters weighed on the currency. Word is that Mexico’s President Nieto called off a visit to the US after a phone call in which Trump refused to announce that Mexico won’t have to foot the bill for the border wall. New Zealand reported a trade deficit of 566 million NZD after the earlier 596 million NZD surplus, but this was still better compared to the estimated 2.71B NZD deficit.
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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.