Daily Forex Analysis 28 August 18

Monday morning and the charts are looking fresh that’s for sure. After a very bullish week last week the EUR has seen some rejection at the weekly resistance level failing to push higher. The EUR has a busy week ahead, with business sentiment and consumer confidence figures out of Germany on Monday and Tuesday, French GDP numbers on Tuesday, Germany employment numbers on Wednesday and August prelim inflation figures out of Spain, France, Germany, Italy and the Eurozone through the week to also influence.  The EUR/USD ended the week up 1.61% to $1.1622.


The Dollar’s economic data is a little more jam packed, with key stats including August consumer confidence numbers on Tuesday, 2nd estimate GDP numbers on Wednesday, the FED’s preferred July Core PCE Price Index figures and personal spending numbers on Thursday, together with August PMI numbers out of Chicago and finalized consumer sentiment figures on Friday. The US and Mexica will agree on a new NAFTA deal this week and it looks good for Canada. The Dollar Spot Index ended the week down 0.99% at $95.146.

For Cable, it’s another quiet week ahead, with stats limited to house price figures that will leave the Pound in the hands of Brexit chatter through the week. The GBP/USD ended the week up 0.76% to $1.2846.

For the Loonie, the focus will be on 2nd quarter GDP numbers due out on Thursday, with any resumption of tri-party NAFTA talks to also influence the loonie which could signal a reversal in some of the pairs.  The Loonie ended the week up 0.27% to C$1.3026 against the U.S Dollar.

The Aussie Dollar, stats through the week include July building approval and 2nd quarter CAPEX figures due out on Thursday and July private sector credit numbers on Friday. The Aussie Dollar will also be influenced by political noise following Turnbull’s ousting on Friday of last week and sentiment towards trade and China’s economy. The AUD/USD ended the week up 0.22% to $0.7329.

The Japanese yen, stats through the week include July retail sales figures due out on Thursday and finalized July industrial production, August Tokyo core inflation figures and July employment numbers on Friday, retail sales and inflation figures the key drivers through the week. The Japanese Yen ended the week down 0.67% to ¥111.24 against the U.S Dollar.

The Bank of England

The Bank of England is the central bank of the United Kingdom. It was established in 1694 and was privately owned in the beginning, the Bank was nationalized in 1946 so now is completely owned by the UK government. BOE’s main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable.

The European Central Bank (ECB)

The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council, and the General Council. Mario Draghi, a member of the Executive Board, is also the President of this organism.

The Federal Reserve Bank (Fed)

The Federal Reserve System (Fed) which is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System’s structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.


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