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By xemarketanalysis August 18, 2017 12:05 pm
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    XE Market Analysis: Spanish Attacks Spark Fresh Nervousness

    OVERVIEW

    • House price growth in China slowed more than expected in July, with prices rising 9.7%.
    • Canadian inflation ticked up to 1.2% in July but remained well below the Bank of Canada's 2.0% target.
    • US consumer sentiment rose more than expected to 97.6 in August.

    HIGHLIGHT

    After falling back from its highest levels since November at the start of the week as tensions over North Korea eased, the volatility index (VIX) often referred to as the fear gauge, has spiked again in light of the atrocities in Spain.

    US DOLLAR

    The US Dollar is set to end the week flat as expectations for US rate hikes once again slip amid soft US inflation and concerns over President Trump's growth agenda. While no members of Trump's team were fired this week, rumors relating to the departure of a key economic advisor and comments from another member of his team about "daily arguments" keep the chaotic theme!

    BRITISH POUND

    The Pound is consolidating this week's decline as softer inflation put rate hikes firmly out of the picture for this year. Risks point towards the Pound remaining weak for the time being as progress on the UK's future relationship with the EU remains far from clear.

    EURO

    The Euro is generally quiet but has held up relatively well considering the ECB minutes this week that pointed to policymaker concerns over the rise in the Euro.

    CANADIAN DOLLAR

    The Loonie hit a 2-week high, rising almost 1% versus its US counterpart as the market viewed last month's inflation data to support more rate hikes from the Bank of Canada. 

    AUSTRALIAN DOLLAR

    The Aussie is marginally higher, hovering above 0.79 cents versus the US Dollar after upbeat minutes from the RBA and stronger than expected employment data.

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