1-888-998-3948


Tuesday, March 21, 2017

Currency Market Trend Analysis: March 20, 2017

Currency Market Trend Analysis: March 20, 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 Releases / Holiday Country
March 21, 2017 Consumer Price Index England
March 24, 2017 Consumer Price Index Canada

Upcoming bank holidays and impactful report releases for select countries.

Market Analysis

CAD - Canadian Dollar

The Canadian dollar opened last week at 1.3450 and closed at 1.3369 after posting impressive gains. After pushing the 1.35 mark, the pair fell back into the broader long term range of 1.30 – 1.35 with 1.30 on the horizon if Canada continues generating positive economic data.

Last week’s highlight was of course the Fed’s rate hike which was anticipated and priced into the markets. The general US dollar weakness that followed was primarily due to FOMC statements stating “the timing of the next rate hike will be tied to incoming economic data”.

This week we have the CPI and Retail Sales data from Canada to keep an eye on with not much news coming out of the US.

 

1. Wholesale Sales: Monday March 20.

2. Core Retail Sales: Tuesday March 21.

3. Retail Sales: Tuesday March 21.

4. Annual Budget Release: Wednesday March 22.

5. CPI: Friday March 24.

6. Common CPI: Friday March 24.

7. Median CPI: Friday March 24.

 

 

GBP - British Pound

The British pound opened last week at 1.2234 and closed at 1.2369 after posting sharp gains. The rise is mostly attributed to general US dollar weakness after last week’s highly anticipated Fed rate hike and dovish FOMC statements.

Expect the pound to experience downward pressure and some volatility over the short to medium term as PM May announced March 29 as the date Article 50 of the Brexit process will be officially invoked.

This week will be quiet on the economic data front on both sides of the pond as the only event of note is retail sales coming from the UK. 

 

1. Rightmove HPI: Monday March 20.

2. CPI: Tuesday March 21.

3. PPI Input: Tuesday Mach 21.

4. Public Sector Net Borrowing: Tuesday March 21.

5. RPI Input: Tuesday March 21.

6. CBI Industrial Order Expectations: Tuesday March 21.

7. 30-y Bond Auction: Wednesday March 22.

8. Retail Sales: Thursday March 23.

9. CBI Realized Sales: Thursday March 23.

10. BBA Mortgage Approvals: Friday March 24.

 

EUR - Euro

The Euro opened last week at 1.0669 and closed at 1.0739 after posting positive gains. This performance is a continuation of the range between 1.05 and 1.08 so expect the price to hold around the 1.08 mark in the short term.

The “pro-Europe election” results from the Netherlands vote last week helped to bolster confidence in the Euro which could be tempered with upcoming elections in France on the horizon.

This week will be quiet on the economic data front as we do not have any major news coming from the Eurozone or the US.

 

1. German PPI: Monday March 20.

2. Bundesbank Monthly Report: Monday March 20.

3. Jens Weidmann talks: Monday March 20.

4. Current Account: Wednesday March 22.

5. German GfK Consumer Climate: Thursday March 23.

6. ECB Economic Bulletin: Thursday March 23.

7. Belgian NBB Business Climate: Thursday March 23.

8. Consumer Confidence: Thursday March 23.

9. Flash PMIs: Friday March 24.


 

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 03:16 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.