Home > XE Currency Blog > XE Market Analysis: Markets quiet during Labor Day


XE Currency Blog

Topics6532 Posts6577
By xemarketanalysis September 3, 2018 1:00 pm
    xemarketanalysis's picture
    xemarketanalysis Posts: 718
    XE Market Analysis: Markets quiet during Labor Day


    • Markets thin due to Labor Day.
    • UK August Manufacturing PMI hits lowest level in 25 months.
    • UK PM's spokesman says most recent Brexit proposal is the 'only credible plan'.


    The Argentinian Peso's woes continues, now 35% lower in the last 7 days against the USD. Even the central bank raising benchmark rates to 60% late last week has not been enough to stem the flow. 


    USD is stuck in the mid range against most of its major trading partners at the moment, with today particularly quiet for the Labor Day holiday. 


    The EU's Chief Brexit Negotiator Michel Barnier summarily dismissed the UK Government's most recent proposal for their post-Brexit relationship. GBP was hit fairly hard at the week's open as a result, but poor manufacturing data throughout the day saw GBP depreciation further accelerate. 


    With EURUSD currently stuck in the 1.1500-1.1750 range, the key fundamental drivers of the next move will be fears around ongoing trade tensions with the US, and the impending Italian budget.


    USDCAD popped up to 8 day highs during today's European session. However, liquidity is patchy due to the Labor Day holiday, so the short term rally might well be met with some selling pressure when participants return on September 4th. Overall though, the threat of US tariffs over NAFTA tensions are likely to keep CAD subdued.


    Australian Retail Sales for July disappointed overnight, but AUD has been buoyed by broad USD weakness throughout the day to regain pre-data levels around 0.7200.


    Paste link in email or IM