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Dean's Daily FX Update – 18 August 2017
In the Zone
- GOLD
- SILVER
- OIL
Noteworthy News
- The rhetoric out of North Korea has quietened down a little bit as the attack of Guam was cancelled, I would keep an eye on this though.
Recap
A little bit of a yoyo trading day yesterday, the greenback continued to weaken in the Asian session as it suffered a hangover from the most recent Donald Trump comments. During the London session the dollar enjoyed a recovery as markets respected support and resistance levels as well as enjoying some upbeat data. Unconfirmed news that Gary Cohn – a potential replacement for Janet Yellen in the Fed – had resigned as Trumps economic advisor led so a significance weakening of the dollar as the market has now raised concerns on the ability of Trump to govern.
News later filtered through that Barcelona fell victim to an ISIS terrorist attack killing 13 and injuring a further 100 – as a side note, there are unconfirmed reports that there was another attack in Spain this morning and so we could see a flight to safety.
Predictably, the JPY felt the love again on security concerns and it now looks as though a test of 108.80 could be back on the cards. The EURUSD and the GBPUSD felt a little bit of pain as the dollar strengthened against both, both pairs are trading at make or break level support levels and I would be hesitant to trade these pairs until I see reaction at these levels. The commodity or “risk” currencies like the USDCAD, AUDUSD and NZDUSD are the currencies most vulnerable to any geopolitical factors.
I personally don’t see much opportunity in the currencies today and am instead focused on the commodities, I still believe that there may be some more drama to unfold in the White House. This may even be a good day to sit on the side lines.
Keep an eye out for the afternoon video that tries to tie everything together.
Important Economic Data out today
14:30 CAD CPI
Consensus: 0.0%
Effect: Actual higher than expected is good for the CAD
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