Greenback Was Dragged Down By Hurricane Harvey. U.S. dollar weakened against its peers as traders worried that weak trade data and the impact of Hurricane Harvey would put a large dent on quarterly growth figures.
Canadian Dollar Lower Ahead of US Jobs Data. The oil-related Loonie was pushed lower, even after Canadian Prime Minister Justin Trudeau sought to reassure markets that Trump’s NAFTA remarks are nothing new. US employment data on Wednesday, August 30 is the highlight this week, with a special emphasis on wage growth data to look for signs of inflation.
Yen Benefits As Geopolitical Tensions Rise. The dollar tumbled to a four-month low against the yen early on Tuesday after North Korea fired a missile that flew over northern Japan and landed in the Pacific waters off the northern region of Hokkaido, South Korea. That was the latest act of provocation by Pyongyang that has escalated tensions in the region over the past month. The Japanese yen strengthened nearly 0.7% against the US dollar, to the 108.8 area this morning, its highest since April 18.
Gold Gaps to $1324 On Missile Provocation. Safe-haven demand has been in play. The gold price surged to its highest level since the November election and closed above the US$1,300 mark for the first time in nearly 10 months.
Crude Oil Down Nearly 3%. Crude oil prices are sinking as many refinery sites were closed due to Hurricane Harvey, delivering a negative impact to the economy. The damage brought by Harvey, which includes the cost of rebuilding, insurance, and loss of jobs, is devastating. According to the Bureau of Safety and Environmental Enforcement, approximately 331,370 barrels of oil per day has been shut in, leading to an excess of Black Crack supplies for the week. The U.S. National Hurricane Center predicts that the storm will move over to Louisiana, which churns out around 3.3 million barrels per day, within the week.
Watch Out Tomorrow For:
WED., 10:00 am GMT: GBP Inflation Report Hearings
WED., 13:30 pm GMT: USD Gross Domestic Product
