Fundamental Analysis

Investors Closely Watch Friday's U.S. CPI Data

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U.S. Dollar Sank On PPI Data. The dollar weakened after U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. Investor focus now turns to Friday's U.S. consumer price index data.

The Yen Rallied Broadly Against Most Major Currencies. Stocks around the world fell sharply on Thursday, as the escalating tensions between the United States and North Korea drove investors to move into yen, gold and other safe-haven assets. U.S. dollar hit an eight-week low against the Japanese yen. The yen is often sought in times of geopolitical tension, partly because Japan has a big current account surplus.

RBA Keeps Rates At Record Lows. The Reserve Bank of Australia (RBA) has left interest rates at an all-time low 1.50 percent after last easing in August 2016 as it balances tepid inflation with skyrocketing household debt. The household debt-to-income ratio is at a record high 190 percent and rising faster than incomes.

Sterling Is At Three-Week Low. Mixed bag of output and trade data didn't have much impact on investors' downbeat view of an economy struggling to meet Bank of England targets. British pound touched a three-week low against the dollar.

NZD Consolidates After The Sell-Off. The kiwi was 0.79 percent lower against the greenback after New Zealand's central bank said it was slightly more uncomfortable with the high level of the local dollar than it had been in May. If the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.69 by year end.

Author: MultiBank Exchange Group Website: http://www.mexgroup.com
MultiBank Exchange Group
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.
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