Daily Forex Fundamental Analysis – Jan 23, 2018

The US dollar caught a bid on reports that Congress passed another temporary funding measure to reopen the government. However, the lower-yielding currency barely held on to its gains as risk appetite took over. Only the Richmond manufacturing index is due today and a dip from 20 to 19 is eyed.
The euro was able to stand its ground as the SPD agreed to start coalition talks with Merkel’s party. There were no reports from the euro zone on Monday’s London session while today has the ZEW economic sentiment report. Germany could show a gain from 17.4 to 17.8 in its reading while the region could see a rise from 29.0 to 29.7.
The pound also carried on with its climb despite the lack of top-tier data as the government continued to make progress in its Brexit transition plans. UK public sector borrowing data is due next and a fall from 8.1 billion GBP to 4.2 billion GBP is eyed. The CBI industrial order expectations index is also due  and a drop from 17 to 13 is expected.
The franc gave up some ground after SNB head Jordan mentioned that the currency is still overvalued despite the recent drop. Another SNB official Weber contended that the currency is highly valued but moving in the right direction. Apart from that, risk-taking has weighed on the Swiss currency as well. There are no reports due from Switzerland today.
The yen is on edge ahead of the BOJ decision as some expect the central bank to take a more upbeat tune after their adjustment on long-term bond purchases earlier this month. However, BOJ head Kuroda has also previously reiterated their commitment to their aggressive easing program. In any case, yen pairs are expecting additional volatility during the announcement and presser.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were big winners for the day thanks to risk-taking. The Aussie and Kiwi have already been on a tear for the most part of the day on upgraded growth forecasts by the IMF while the Loonie trailed behind as NAFTA concerns and a fall in crude oil lingered. Canadian wholesale sales also came in weaker than expected with a 0.7% gain versus the projected 1.0% uptick. There are no reports due from the comdoll economies today.
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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.