Fundamental Analysis 2017.07.18 – Dollar Continues to Slip

The US dollar continued losing ground across most other G10 currencies.

EUR/USD price went up to 1.1535 shortly after it was announced that Obamacare reform was not enacted, with two more Republicans voted against it. There is potential for correction if both the Eurozone and the German ZEW Surveys on Economic Sentiment are lackluster, thus bolstering the USD against the EUR. Some analysts are speculating indices to experience a slight drop also, between с 18.6 to 17.8 and from 37.7 and 37.2 points. At the moment price movement of the pair is unlikely, most traders will more than likely take positions on Thursday, after data from the ECB is published regarding the interest rate decision.

GBP/USD climbed to 1.3098, most traders though are waiting for the announcement of June’s UK inflation data. Recently the CPI has on an upswing and observably higher than the level set at 2.0%, this in turn has raised red flags at the BoE, who’s stance has been pro-rate hike recently. Mark Carney should make an address later on today launching the new 10-pound Sterling bill, but he is unlikely to reference the morning’s decision.

USD/JPY slipped slightly coming in at 111.98 this was largely due to the Trump administrations inability to pass healthcare reform.

Conversely AUD/USD went up to 0.7900.

Commodity markets also saw an influx. Metals hit the highest price they’ve seen after weeks of losses; gold in fact is currently trading at 1237.80 and silver is floating around 16.15.

Brent prices are at 48.60–48.40 and WTI is banded between the prices of 46.20–45.95. Investors are likely eagerly awaiting the API Weekly Crude Oil Stock report.

Stocks have corrected after the failed US health care reform attempt:

ASX200 5673.0
NI255 19937.8
FTSE100 7384.0
CAC40 5218.0
DAX 12560.0
DOW 12602.0
S&P500 2455.0
NQ 5841.2

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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