Since the beginning of Friday’s trading, the US dollar has been sold-off across the board while the Antipodean currencies have remained among the best within the G10 basket even as there is no an obvious risk-on mode. In New Zealand manufacturing activity in the second quarter improved from 3.1% to 3.9%, one of the reasons why the kiwi has thrived so far. In turn, a massive retreat seen in the greenback could be a consequence of the hurricane Irma which shows its devastating power and is about to hit the US coast during the weekend.
The latest hours on the financial markets have been exceptionally stormy. Firstly, the European stock markets halted their gains following the ECB’s monetary policy decision. Secondly, the greenback’s rout seen overnight contributed to mounting uncertainties as the US 10Y yield declined just shy of 2%. Even as the EURUSD has trimmed some of post-ECB gains, it has remained above the level from before the decision.
The last bag of the macroeconomic data from the UK’s economy this week was fairly mixed. Although, manufacturing production easily beat forecasts, construction output substantially missed the consensus. Having said that, that kind of scenarios could have been expected according to PMIs. In effect, the GBPUSD has struck 1.3200 - the highest point since August 3.
The last day of this week on the cryptocurrency market is passing quite calmly amid no swings of note. However, it doesn’t mean that the whole week has been so benign. Keep in mind that we’ve begun with a big blow to Bitcoin (BTCUSD on xStation5) from the Chinese central bank. In turn, whipping through major virtual currencies today, it’s worth mentioning Dash (DSHUSD) which has been forming a triangle pattern. Thus, it looks like the price could try to break higher in the nearest future, however $350 remains a key hurdle to be jumped over.
Today it’s all about the Canadian jobs report which could yet more buttress the Canadian currency. Let us recall the Loonie gained a foothold in the aftermath of an unexpected rate increase on Wednesday.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.