INGOT Brokers AU | Fundamental Report (2017-11-06)

Fundamental Report (2017-11-06)

Overview

The U.S Dollar index held steady near its three-month highs versus a basket of major currencies on the beginning of this week after the latest U.S data showing that an interest rate hike is likely to occur next month.Furthermore, The greenback index ended last week in green territories despite the non-farm payroll missing expectation and a slowdown in wages growth.

Regarding the latest employment data from the U.S, the non-farm payroll came at 261,000 jobs missing expectation of 310,000 jobs in October. However, this figure was significantly higher than the number seen in September which came at minus 33,000 jobs amid the havoc caused by both hurricane Harvey and Irma.

Moreover, the  U.S. wage growth came flat below expectations of 0.2 increase, and behind the 0.5 increase seen in September, however, analysts were optimistic that wages will pick up in 2017.Moreover, The the unemployment rate came at 4.1 percent beating expectation by 0.1 percent and better than the previous month which came at 4.2 percent.

Regarding the tax reforming, markets will be waiting to see whether there is more progress in U.S. tax reforms according to analysis, while the focus will be on the U.S. President Donald Trump's visit to Asia.

President Trump said that he will discuss how to improve economic relationships between America and Japan, saying that "Japan has been winning" on trade in recent decades.the main discussions are expected to be dominated by North Korea’s nuclear activities and trade.

Over in Europe, the common currency held steady against the U.S dollar in today’s session. However, the single currency fell against the U.S dollar in Friday’s session to trade at 1.1607.

Meanwhile, The Cable edged higher in Friday’s session after posting its biggest one-day fall versus the dollar since June in Thursday’s session this significant drop came after the bank of England raised interest rates for the first time in over a decade. The Bank of England voted 7-2 to increase its benchmark Bank Rate from 0.25 percent to 0.50  percent as was expected but said any further increases would be very gradual causing the Sterling to fall by nearly 1.5 percent. The GBP/USD traded higher on Friday to settle at 1.3075.

Looking at safe-haven currencies, the Japanese yen fell against its dollar counterpart in today’s session; the dollar backed off the from session high after rising to reach 114.73 despite Yield differential remains unchanged.  The USD/JPY remained flat to trade at 114.07 at Friday’s close. Moreover, the USD/CHF rose to trade at 1.0005 at the close.

In the precious metals front, Safe-haven asset gold fell against the greenback on Friday to trade at 1269.65 at the close.

Elsewhere in Canada, the loonie rose versus the greenback supported by The rise in oil prices and employment change in October which came at 35,300 exceeding the expectation of 15,000. Thus USD/CAD fell to settle lower at 1.2762.

Meanwhile, in Australia, the Aussie dropped in Friday’s session after the retail sales came flat below expectations 0.4 percent.The AUD/USD traded at 0.7650 at Friday’s  close.

 

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