INGOT Brokers AU | Fundamental Report (2017-11-07)

Fundamental Report (2017-11-07)


The U.S Dollar index fell on Thursday versus a basket of major currencies backing away from the session highs of 94.99 as Treasury yields slipped on uncertainty regarding the tax bill pass.

On the other hand, The greenback has been on the front foot after positive U.S. services and factory data issued on Friday, the U.S dollar was also supported by the expectations for the Federal Reserve to raise interest rates next month.       The greenback index ended the session at 94.61.

Regarding Treasury yields the benchmark 10-year yield sliped to 2.30 percent after rising to a seven-month high of 2.47 percent late in last month.

Long-Term Treasury yields have been brought down by the uncertainty over whether the U.S Republicans could pass their tax plan these doubts are lowering hopes for a faster economic growth. Furthermore, worries are rising regarding the scale of borrowing required to finance this tax plan.

the U.S dollar was also pressured following news that William Dudley the head of the federal reserve of NewYork was preparing to retire earlier than planned in mid-2018 rather than when his term ends on Jan. 19.

Over in Europe, the common currency edged higher against the U.S dollar in today’s session. However, the single currency remained mostly steady against the U.S dollar in Monday’s session as investors are waiting for Draghi the head of the europian central bank speech later today the EUR/USD was trading at 1.1609.

Meanwhile, The Cable rose in Monday’s session regaining most of its losses after posting its biggest one-day fall versus the dollar since the Brexit in Thursday’s session after the bank of England raised interest rates for the first time in over a decade.

The Bank of England increased 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 Monday to settle at 1.3172.

Looking at safe-haven currencies, the dollar backed away from eight-month highs versus the yen after the slip of the treasury yields.  The USD/JPY fell to trade at 113.69 at Monday’s close. Moreover, the USD/CHF fell to trade at 0.9974 at the close.

In the precious metals front, Safe-haven asset gold rose against the greenback in Monday’s session supported by the rising political havoc in the Middle East after Saudi Prince Mohammed bin Salman ordered series of arrests in Saudi Arabia in his anti-corruption Drive, Gold rose to trade at 1281.80 at the close.

Elsewhere in Canada, the loonie rose versus the greenback for the fourth consecutive session supported by The rise in oil prices and better than expected reading of The Ivey Purchasing Managers' Index which came at 63.8 beating expectation of 60.2. Thus USD/CAD fell to settle lower at 1.2703.

Meanwhile, in Australia, the Reserve Bank of Australia kept its interest rate at 1.5 percent as was expected.The AUD/USD rose to trade at 0.7690 on Monday’s close.


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