Fundamental Analysis 2017.03.08 – EUR, GBP, AUD and USD

Wednesday’s trading session caused the US dollar to yield mixed correlations across from other major currencies. It gained against AUD and JPY but slipped against the GBP and EUR.

. According to the ADP data on employment levels, employment dropped to 178,000 in July a relatively stark contrast from 191,000 in June. This triggered a sell off of the USD – as investors speculated the weak ADP data is a forecast for the non-farm payroll.

EUR/USD gained 0.47% as a result of market sentiment reaching 1.1855.

GBP/USD also rode the wave of traders’ sentiment, gaining 0.11% is currently in the region of 1.3220. Markets will be eagerly waiting on the BoE’s interest rate decision and its announcement at 13:00 GMT+2.
USD/JPY saw a 0.31% increase reaching a price around 110.67.

AUD/USD slipped largely due to the weak data regarding Australian trade balance which went down by 0.63%. The data that was released earlier today showed a sharp decline from 2,024 mln in May to 856 mln last month (June).

Metals continued losing. Gold fell to 0.52% and is currently at 1262.21. Silver lost1.08% and is currently trading at 16.52.

Oil prices saw a drop too, when the US Department of Energy announced a smaller than expected decline of oil reserves. By the end of the day this corrected and was trading in the green. This affect resulting in Brent increasing 1.50% to a unprecedented 52.22 and WTI grew to 49.60 after gaining 1.56%..

American stock traded mixed just like its currency counterpart. The Dow Jones went up 0.43% to 21996.5. NQ slipped 0.32% reaching 5912.6. S&P also lost 0.1% and settled to 2473.0.

European stock is currently trading in the red. FTSE UK lost 0.35% reaching 7407.6. CAC slipped 0.28% and dropping to 5115.6. The mighty DAX is currently trading at 12140.8after a -1.05% loss.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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