Daily Alert: Tuesday 15th August 2017

Mark NugentAug 2017, Daily Alert

Forex Analysis for Tuesday 15th August 2017

Economic Calendar

JPY Prelim GDP q/q came in at a respectable 1.0% (no forecast).

Chinese Industrial Production missed badly (6.4% vs 7.1%).

The Trump/N Korea situation cooled as NK leader Kim said they will not strike Guam yet.

German Finance Minister Schaeuble said that he is not pleased about the ECB’s low interest rate policy which he hopes will end soon. Schaeuble also commented that interest rates will remain low, but we will see an end to ultraloose monetary policy in the foreseeable future and that most people expect the ECB to take a further step at its September meeting towards exiting very expansive monetary policy. (Newswires)

Geopolital

Early Today (Tues), AUD Monetary Policy Meeting Minutes from August 1st meeting stated that the RBA judged steady policy is consistent with growth and inflation targets. RBA also stated that GDP growth likely picked up in Q2 and noted improvement in overseas economies such as China and Euro area. Furthermore, the central bank added that AUD strengthened amid broad-based USD weakness and that further increase in AUD would dampen growth and inflation. (Newswires)

Market Reaction

With geopolitical tensions cooling, global equities gapped up and kept rising. The JPY weakened. Gold dropped as did oil. The US 10 Year yield rose. The USD itself was subdued due to Friday’s CPI miss which has the current FedWatch Tool indicating no more rate hikes this year. This can, and does, change regularly. The EUR rose ever so slightly and the GBP climbed up off support.

News Media

Less chance of BoE rate hike

Today’s Calendar

GBP CPI; USD Retail Sales

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