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Dean's Daily FX Update – 01 August 2017
In the Zone
- EURUSD
- AUDUSD
- NZDUSD
- USDCAD
- USDZAR
- Gold
- Silver
Noteworthy News
- I am still keeping an eye on the North Korea developments, one gets the feeling that conflict is inevitable. You also get the feeling that countries are going to have to start picking sides soon, and I feel for China if that is the case.
Recap
With a lack of economic data on the calendar to spark the markets into life, we had to endure a very quiet London session, you almost got the sense that all eyes were on the White House in anticipation of something crazy to come from the “circus.” The market was not disappointed and the White House delivered yet another twist as Director of Communications Anthony Scaramucci was given his marching orders, this after only 10 days in the job. Doesn’t remind you of a reality show where someone was fired once a week? J
On a serious note though, we are not sure who took this decision yet. If it was new Chief of Staff General Kelly then perhaps it is a good thing as he is known to have a no nonsense approach – and this could be the disciplinary approach the White House needs, also a lack of tweets from Trump would suggest that he was not the one to make the decision. Needless to say the latest round of musical chairs lead to another round of dollar selling.
The major pairs all made huge gains against the dollar with the EURUSD impressing by gaining in excess of 100 pips and trading as high as 1.1850 last night, I am sure that there will be a small pullback but I suspect that buyers will start building their long positions at 1.1750 again.
The big news this morning will come from the RBA and the AUDUSD, this pair has been on a bit of a tear of late and I suspect that the RBA will start trying to weaken their currency somewhat this morning. It is trading around 0.8000 which will not help the Australian economy.
We have a nice video this morning where we highlight some possible opportunity.
Keep an eye out for the afternoon video that tries to tie everything together.
Important Economic Data out today
06:30 AUD RBA Rate Statement
Consensus: None
Effect: More hawkish than expected is good for the AUD.
10:30 GBP Manufacturing PMI
Consensus: 54.4
Effect: Actual higher than expected is good for the GBP
14:30 USD Core PCE Index
Consensus: 0.1%
Effect: Actual higher than expected is good for the USD
16:00 USD ISM Manufacturing PMI
Consensus: 56.4
Effect: Actual higher than expected is good for the USD
Tentative NZD GDT Index
Consensus: 0.2%
Effect: Actual higher than expected is good for the NZD
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