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By xemarketanalysis August 21, 2017 11:45 am
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    XE Market Analysis: Another High-Level Departure from Trump's Administration

    OVERVIEW

    • The UK government tries to step up negotiations on Brexit with Europe.
    • The Norwegian Krone continues to strengthen as we approach the elections in Norway.
    • Wholesale trade numbers in June from Canada fail to liven up the Loonie.
    • The Bundesbank upgrades growth expectations for Germany for this year.

    HIGHLIGHT

    The departure of Steve Bannon from the Trump administration had little impact on the markets as these departures are now becoming the 'norm'.

    US DOLLAR

    The US Dollar has strengthened somewhat in this cautious environment helped by some stronger than expected economic data. We saw a significant improvement in consumer sentiment in August with the University of Michigan index rising from 93.4 to 97.6.

    BRITISH POUND

    Sterling remains under pressure while the Brexit negotiations stall. This week the UK is expected to publish five new position papers.

    EURO

    The ECB looks as though it will need to wind down its 2 trillion Euro bond buying program as the central bank is getting to the stage of running out of bonds to buy. Meanwhile, the Bundesbank said that they expect German growth to top expectations this year.

    CANADIAN DOLLAR

    The Loonie continues to deal in a quiet rangebound market between 1.2550, and 1.2650 against the US Dollar. Wholesale trade in June dropped more than expected by 0.5%.

    AUSTRALIAN DOLLAR

    The Aussie is marginally higher from last week's close although sentiment remains low after the terrorist attacks in Barcelona.

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