1-888-998-3948


Monday, January 23, 2017

Currency Market Trend Analysis: January 23, 2017

Currency Market Trend Analysis: January 23, 2017
Source: CXI International Payments Team

 

By The Numbers: Your FX Week In Review

 
 
Foreign currency value versus USD is decreasing
 
Foreign currency value versus USD is increasing

*Indicators show the percent change over the past week.

Currency Calendar

Date Holiday Country
January 24, 2017 UK Supreme Court Rule on Parliament's Role in Brexit England
January 26, 2017 Gross Domestic Product (YoY) England
January 26, 2017 Advance Goods Trade Balance (Dec) USA
January 27, 2017 Gross Domestic Product (Annualized)  USA
January 27, 2017 Durable Goods Orders (Dec) USA

Upcoming bank holidays and impactful report releases for select countries.

Market Analysis

CAD - Canadian Dollar

The Canadian dollar lost 180 points last week against its US counterpart and closed the week near the 1.32 mark. We expect this pair to continue trading in a tight range this week as the economic calendar is light with only the Wholesale Sales report worth noting. 

President Trump’s inauguration speech included an “America first” statement regarding foreign and trade policy. The details and implications of which are an unknown to the rest of world, especially Canada who exports about 80% of its goods to the US.

 

1. Wholesale Sales: Monday January 23. 

 

GBP - British Pound

The GBP closed last week at 1.237 after gaining 340 points primarily on general USD weakness and uncertainty with President Trump’s trade policy. PM May’s clarity that the UK should brace for a hard Brexit helped to clear some of the risks and confusion surrounding that process.

This week’s key event is Preliminary GDP which comes out on Thursday so barring any major surprises, this pair should continue towards the 1.25 mark throughout the week.

 

1. EU Membership Court Ruling: Tuesday January 24.

2. Public Sector Net Borrowing: Tuesday January 24.

3. CBI Industrial Order Expectations: Wednesday January 25.

4. Preliminary GDP: Thursday January 26.

5. CBI Realized Sales: Thursday January 26.

 

EUR - Euro

The EUR closed out last week in the 1.07 area and is expected to trade in a narrow range throughout this upcoming week. Again, general USD weakness continues to be the main theme and driving force with the major currency pairs, with the exception of the Canadian dollar.

This week’s economic calendar contains a variety of key events including German surveys, Spanish Employment, ECB data and PMIs.

 

1. German Bundesbank Report: Monday January 23.

2. Eurostat’s Consumer Confidence: Monday January 23.

3. ECB President Mario Draghi’s Speech: Tuesday January 24.

4. Flash Purchasing Managers Indexes (PMIs): Tuesday January 24.

5. German Ifo Business Climate: Wednesday January 25.

6. National Bank of Belgium (NBB) Business Climate: Wednesday January 25.

7. Spanish Unemployment Rate: Thursday January 26.

8. German GfK Consumer Climate: Thursday January 26.

9. ECB Monetary Data: Friday January 27.


 

FX Market Pro

Corporations & Financial Institutions: Want to get ahead of the curve for the upcoming week? Get CXI's currency market trend analysis sent directly to your inbox weekly.


About the Author

Ganesh Persaud

 Ganesh Persaud - Corporate Trader

Ganesh educates corporate clients on foreign currency markets lending industry best practices that enhance client knowledge and create specialized solutions that fit each business. Interested in having a custom international payments strategy or foreign exchange risk plan?


About Currency Exchange International
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 90 foreign currencies, multi-currency cash passport’s, traveler’s cheques and gold bullion coins and bars. For financial institutions and corporations, our services include the exchange of foreign currencies, international wire transfers, global EFT, the purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com

Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.

This publication has been prepared by Currency Exchange International for informational and marketing purposes only. Opinions, estimates and projections contained herein are our own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed reliable, but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which Currency Exchange International, its affiliates or any of their employees incur any responsibility. Neither Currency Exchange International nor its affiliates accept any liability whatsoever for any loss arising from any use of this information. This publication is not, and is not constructed as, an offer to sell or solicitation of any offer to buy any of the currencies referred to herein, nor shall this publication be construed as an opinion as to whether you should enter into any swap or trading strategy involving a swap or any other transaction. The general transaction, financial, educational and market information contained herein is not intended to be, and does not constitute, a recommendation of a swap or trading strategy involving a swap within the meaning of U.S. Commodity Futures Trading Commission Regulation 23.434 and Appendix A thereto. This material is not intended to be individually tailored to your needs or characteristics and should not be viewed as a “call to action� or suggestion that you enter into a swap or trading strategy involving a swap or any other transaction. You should note that the manner in which you implement any of the strategies set out in this publication may expose you to significant risk and you should carefully consider your ability to bear such risks through consultation with your own independent financial, legal, accounting, tax and other professional advisors. All Currency Exchange International products and services are subject to the terms of applicable agreements and local regulations. This publication and all information, opinions and conclusions contained in it are protected by copyright. This information may not be reproduced in whole or in part, or referred to in any manner whatsoever nor may the information, opinions and conclusions contained in it be referred to without the prior express written consent of Currency Exchange International.
Posted By Ganesh Persaud at 03:39 PM
comments powered by Disqus

Platinum Passport

Travelers: Never miss a thing and be the first to know about CXI branch promotions, travel tips and hot trends.

Currency Insider

Corporations & Financial Institutions: Want to get ahead of the curve for the upcoming week? Get CXI's currency market trend analysis sent directly to your inbox weekly.