INGOT Brokers AU | Fundamental Report (2017-10-27)

Fundamental Report (2017-10-27)


The U.S Dollar index traded in green territories versus a basket of major currencies on Friday, despite the negative data from the National Association of Realtors, the pending home sales came in flat in September missing the expected 0.2 percent increase. The U.S dollar index rose on Friday and to quote at 94.7 at the close.

Furthermore, the department of labor in the U.S reported on Thursday 233,000 of initial job claims, which came better than the expectation of 235,000 claims.

The greenback found support from the slump in the euro after Mario Draghi, the president of the European central bank, indicated that the bond purchasing program might be extended beyond the September of 2018.

The single currency fell to its three-month lows against its U.S dollar counterpart to trade at 1.1650 at the close.  After the European Central Bank announced its intention to reduce its monthly purchases of bonds from €60 billion to €30 billion and extending its bond purchasing programme.

Meanwhile, The Cable followed the euro lower losing most of Wednesday’s gains pressured by retail sales that dropped in October as traders were focusing on Bank of England next meeting on the 2nd of November to decide whether it will proceed with an interest rate increase. The GBP/USD traded lower to settle at 1.3160.

In the safe-haven currencies, both the Japanese yen and that Swiss franc fell against their dollar counterpart.

 The Swiss franc slipped to trade at 0.9976 at the close, the Japanese national core consumer price index missed the expectation of a 0.8 percent increase by 0.1 percent. However, Tokyo core consumer price index came at 0.6 percent better than the expectation of 0.5 percent. The USD/JPY fell to trade at 113.97 at the close.

In the precious metals front, Safe-haven asset gold fell against the greenback on Friday to trade at 1265.55 at the close . in which the U.S dollar hit three-month highs on Friday following the drop in the single currency.

Elsewhere in Canada, the rise in oil prices was not enough to lift the Canadian dollar the loonie fell versus the greenback on Friday pressured by the strengthening of the U.S dollar. As a result, The USD/CAD ended the session at 1.2846.

Meanwhile, in Australia and New Zealand, the Aussie and Kiwi dollars ended the session in red territories on Friday versus their U.S dollar counterpart,

the Australian dollar found presser from the producer price index which came below expectation at 0.2 percent versed the forecasted 0.4 percent; the AUD/USD was trading at 0.7659 at the close. While the NZD/USD was trading at 0.6842 after hours.


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