Currency Market Trend Analysis: March 13, 2018
By The Numbers: Your FX Week In Review
|Date||Releases / Holiday|
|March 12, 2018||Federal Budget Announcement||USA|
|March 12, 2018||Eurogroup Meeting||EUR|
|March 12, 2018||Manufacturing Production||EUR|
|March 13, 2018||Consumer Price Index||USA|
|March 13, 2018||Inflation Rate MoM||EUR|
|March 13, 2018||Spring Budget||BRT|
|March 15, 2018||Weekly Jobless Claims||USA|
|March 15, 2018||Unemployment Rate||EUR|
Upcoming bank holidays and impactful report releases for select countries.
CAD/USD opened last week at 0.7765 and closed at 0.7804 – increasing by 0.5% even with the tariff threat that U.S. President Trump has been hovering over everyone’s head.
Positive oil prices have extended some support to the Loonie and cap gains. Even with NAFTA agreements President Trump has, for the time being, exempted Canada and Mexico from steel and aluminum tariffs.
On other trade news, the future trading partnership with the U.K. Morneau has stated that “to the extent that we can get a better arrangement with the U.K. in the future, that’s positive.” There have been indications that after the U.K. quits the European Union their partnership could go further in areas like financial services.
1. Federal Budget Announcement: Monday, March 12th
2. Consumer Price Index: Tuesday, March 13th
3. Weekly Job Claims: Thursday, March 15th
GBP/USD opened last week at 1.3801 and closed at 1.3851 – increasing by 0.40% with the Spring Budget coming.
The budget meeting is going to include a fresh forecast on GDP growth and UK government borrowing, adding also Brexit’s impact on the economy. This, along with the release of US inflation, may result in some bumpy action around the GPD/USD.
1. Spring Budget: Tuesday, March 13th
European Central Bank Euro
EUR/USD opened last week at 1.2317 and closed at 1.2307 – depreciating by 0.08% after the bombshell election that occurred in Italy.
Following the Italian elections, there have been concerns about the country’s debt pile and its hostility toward monetary union. French Economy Minister Bruno Le Maire told reports in Brussels, “I think the difficulties will lead us to move forward even faster and concretely in integrating the euro area. It’s absolutely urgent for us to make progress.”
The European Commission warned Italy last week to work towards reducing the pile of government debt, which is the second highest in the European Monetary Union after Greece. Italy is in an “excessive economic imbalance,” and the strong electoral antiestablishment parties may increase concerns of the imbalances in the next coming months.
1. Eurogroup Meeting: Monday, March 12th
2. Manufacturing Production: Monday, March 12th
3. Inflation Rate (MoM): Tuesday, March 13th
4. Unemployment Rate: Thursday, March 15th
About the Author
Remon Shehata - Data Analyst
Remon educates corporate clients on foreign currency markets lending industry best practices that enhance client knowledge and create specialized solutions that fit each business. Interested in having a custom international payments strategy or foreign exchange risk plan? Request A Call
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