Geo-Politics are becoming more interesting this week

Weekly Report - 10/09/2018

Geo-Politics are becoming more interesting this week


Brexit talks are going to be key for the GBP Mixed reports made the Pound to be more on the choppier side.

Now about the NAFTA talks are going to be in focus and will be the most important driver for the Loonie in the following week.

With the threat of more tariffs on Friday being more realistic now, we can anticipate a respond from the Chinese government, with no progress at any level the fear for more aggressive trade war is creating panic to global financial markets. We can see now investors supporting the demand for the Dollar and the Japanese Yen. Threats from Iran to resume its uranium program will probably upset the U.S President. While the tensions are rising more and more escalation is possible at any time and needs to be considered.

With no real progress between US and Turkey, has left the Turkish central bank with no choice but to raise the rates. The CBT expected to hike rates on Thursday.

The Week that was

The GBP, stats were limited to August house price figures, dint have a major impact on the Pound. Pound received much needed support through the week. Dollar, key stats released including August wage growth and nonfarm payroll figures. Following disappointing ADP numbers released on Thursday, the Dollar was more sensitive to the nonfarm payroll figures and the unemployment rate. For the AUD, home loans went up by 0.4% in July, coming in ahead of a forecasted 0.1%. Cryptos last week was on the move with some major and volatile moves. On the Technical side, on the weekly chart of the EUR/USD, we saw a shooting star candlestick that was formed before 2 weeks. It gave us the possibility of the reversal down and we had a red candle confirming our analysis today.


Main Focus This Week

Economic data for the greenback this week ahead includes: First on Tuesday July’s JOLTs job openings. The wholesale and consumer price inflation will be on Wednesday and on Thursday Next the August retail sales and the September prelim consumer sentiment figures are releasing on Friday. Following positive labor market stats on Friday. Now if we see any positive sentiment in inflation or jump in domestic consumption will probably raise the positive appetite 2 more rate hikes before the end of the year. The Dollar Spot Index closed the week up about 0.20% at $95.339.Now the focus also will be on the EUR as well. The Economic news this week will include, first September economic sentiment figures for Germany and the Eurozone on Tuesday, 2nd quarter wage growth, July industrial production figures, and July trade figures for the Eurozone will be on Friday. Last the August inflation numbers are coming out during the week.


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