Currency Market Trend Analysis: June 12, 2017
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By The Numbers: Your FX Week In Review
Currency Calendar
Date | Releases / Holiday | Country |
---|---|---|
June 12, 2017 | Monthly Budget Statement | USA |
June 13, 2017 | Wholesale Price Index (May) | Germany |
June 13, 2017 | Economic Sentiment Report (June) | Germany |
June 13, 2017 | Consumer Price Index (May) | UK |
June 13, 2017 | Economic Sentiment Report | Europe |
June 14, 2017 | Retail Sales Report (May) | USA |
June 14, 2017 | Interest Rate Decision | USA |
June 14, 2017 | Monetary Policy Statement | USA |
June 15, 2017 | Interest Rate Decision | UK |
June 16, 2017 | Interest Rate Decision | Japan |
June 16, 2017 | Consumer Price Index | Europe |
June 16, 2017 | Labor Market Conditions Index (May) | US |
Upcoming bank holidays and impactful report releases for select countries.
Market Analysis
CAD - Canadian Dollar
The CAD opened last week at 0.7413 and closed at 0.7444.
The CAD gained against the USD last week, in part due to Canada’s May jobs report; Canada added 54.5 thousand jobs, far exceeding expectations of 11.5 thousand. The BoC is not expected to raise rates and no major economic news is due this week.
The CAD is likely to remain stable in near future, but may appreciate slightly against the USD as softening growth and political turmoil weigh on the USD.
GBP - British Pound
The GBP opened last week at 1.2888 and closed at 1.2737.
The GBP fell 1.17% against the USD last week, as the market reacted to a hung parliament, political uncertainty, and a broad selling of tech stocks. Markets seem to be concluding that the election may have reduced the odds of the UK exiting the single market – likely tempering the volatility created by this historic event. The BoE is not expected to raise interest rates at its meeting on the 15th.
The market has remained relatively stable in the wake of the hung parliament and should continue this trend through the week.
1. Consumer Price Index (May): Tuesday June 13.
2. Interest Rate Decision: Thursday June 15.
EUR - Euro
The Euro opened last week at 1.1280 and closed at 1.1189.
Over the past week, the Euro has depreciated 0.81% against the USD. This depreciation was in part due to the ECB cutting its inflation forecast in its June 8 statement. Merkel has signaled that the EU is ready to begin Brexit negotiations within the next few days. She expects that negotiations will carry forward as expected, despite the UK election result. Expect stable rates as markets reaction to last week’s political turmoil tempers.
Tuesday will see the release of the June Economic Sentiment Reports for Germany and the European Monetary Union.
1. Wholesale Price Index (Germany - May): Tuesday June 13.
2. Consumer Price Index (Europe - May): Friday June 16.
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