Weekly Market Report
Inflation in the euro area remained well below the European Central Bank’s goal as policy makers prepare to discuss unwinding stimulus. Mario Draghi’s prediction that inflation would remain near June levels seems to be ringing true, although the European economy is thriving there still hasn’t been a sign of a trend during the last year or so. This should see an increased volatility between EUR dominated pairings over the next few weeks.
GBP has continued its recovery against the USD with prices now holding above the 1.30 mark. There will be immediate resistance at 1.3130 but if positive boost will the pair hold well above 1.3158. This is bad news for those clients looking at sending back AED as it seems the strong dollar is seemingly beginning to revert back to levels over 5. If you are looking at selling AED in the next few weeks please get in touch today to secure your requirement.
The USD has also rapidly slipped away from the EUR as current pricing is now at a 18 month high , as US foreign policy continues to heavily weaken the world’s most trade currency. Will we see a reprieve in 2018? It seems that the Trump administration will continue to cause issues well into next year.
Key Week Data (source FX Street)
01/08 04:30 AUD – RBA Interest Rate Decision
01/08 09:00 EUR Gross Domestic Product s.a. (YoY) (Q2)
01/08 14:00 USD ISM Manufacturing PMI (Jul)
03/08 11:00 GBP BoE Asset Purchase Facility
03/08 – 11:00 BoE interest Decision
04/08 – 12:30 – Nonfarm Payrolls (Jul)