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By xemarketanalysis February 12, 2018 2:22 pm
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    XE Market Analysis: Slow Start to the Week in Currency Markets

    OVERVIEW

    • The US Dollar claws back lost ground on stronger equity markets and risk sentiment shift.
    • The Pound lost ground on the transition of uncertainty.
    • South African Rand spikes higher on rumors that the President has agreed to step down.

    US DOLLAR

    The US Dollar is stronger today as investors unwound their bearish Dollar trades from the past week. The number of short Dollar positions declined for the first time in two weeks. The focus from here will be on inflation and retail sales numbers due out of the US on Wednesday.

    BRITISH POUND

    The Pound is weaker today as investors price in the uncertainty around the transition period after Brexit. The Pound will continue to remain vulnerable to bad Brexit news for the foreseeable future as all the Sterling positive factors are now priced in for the short term. Next up for the Pound will be the inflation numbers tomorrow and retail sales on Friday. 

    EURO

    The Euro is largely unchanged against major currencies in a slow start to the week. The focus for the Euro will be the GDP growth number due to be released on Wednesday. 

    CANADIAN DOLLAR

    The Loonie is steady today off the back of a poor week last week. The price of crude oil helped the Canadian unit as it moved higher off the back of the stronger world equity markets.  

    AUSTRALIAN DOLLAR

    The Aussie Dollar is higher today as stronger world equity markets gave investors more appetite for risk. The Aussie is still a good destination for the carry trade to earn higher interest rates while borrowing at lower rates. 

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