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By xemarketanalysis November 8, 2018 4:31 pm
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    XE Market Analysis: Greenback Gains Back, Sterling Steady, Loonie Lifts

    OVERVIEW

    • Gold continued to slide in value ahead of US Fed announcement on interest rates
    • GBP USD is down slightly despite Brexit deal pessimism from former Brexit Secretary David Davis
    • Canadian Dollar edges up slightly on strong PMI numbers

    HIGHLIGHT

    The US Federal Reserve Bank announced it will leave the interest rate where it is. They said the economy was doing well as far as job creation, consumer spending, and unemployment. With a split Congress, political and economic experts feel gridlock will deter economic stimulus efforts, inflation risks are minimal.  

    US DOLLAR

    The number of unemployed Americans is holding steady this month near 214,000. This data release follows a dramatic midterm election day and an announcement that the Fed will wait for now on increasing interest rates.  Gold slipped slightly today, as the US Dollar increased slightly against the GBP and the Euro. 

    BRITISH POUND

    There was little movement of the GBP today ahead of tomorrow's data releases on GDP and manufacturing production. Both are expected to edge up by 0.1%. The Pound has increased in value by 1.22% so far this week and now sits at 1.30596.

    EURO

    Italy's deficit challenges and reluctance to revise their budget for the next couple of years is weighing on the EU today. The EUR GBP sank to 0.8698 from 0.8728 today, despite optimism that GDP will increase by 2.1% this year, which rose by 2.4% 2017 over 2016. 

    CANADIAN DOLLAR

    USD-CAD has continued to trade in a narrow range around 1.3100, Seven-month lows in oil prices, and Friday's disappointing October jobs report, which paled in comparison with the strong U.S. jobs report for the same month, should keep USD-CAD underpinned. USD-CAD has support at 1.3049-50, and resistance at 1.3137-40.

    AUSTRALIAN DOLLAR

    The AUD had a decent day for most of today's trading, due to better-than-expected trade data with China. Exports were above forecasts at 15.6% stronger, and exports grew by 21.4%. Experts feel that US-China trade wars aren't a drag on Australia's economy. AUD USD is down a touch to $0.7256. 

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