Forex Analysis for Friday 8th September 2017
ECB keep interest rates and QE unchanged. Draghi seems unconcerned by the appreciating EUR, which causes the EUR to rise. The USD is being sold widely due to concerns over Hurricane Irma, due to strike Florida on Sunday. North Korea and fading rate hike expectations are also pressuring the currency. The USD index moves decisively below the April/May 2017 lows and is in territory not seen since January 2015. In Japan, Final GDP misses at 0.6% vs 0.7%. Chinese Trade Balance misses at 287B vs 337B – the underlying numbers show exports missing forecast to the downside and imports beating expectations.
Most equity indices are down on the week after Monday’s North Korea-inspired fall. Oil and Gold are rising. The US 10 Year drops significantly. The JPY strengthens as does the EUR. The CAD remains bullish after the unexpected rate hike earlier in the week. We are clearly risk-off.
There is no further Tier I news this week.
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