• Financial Institutions
  • Corporations
  • Travelers
  • Foreign Bank Note Exchange
  • International Drafts
  • International Wire Transfers
  • Global EFT
  • Foreign Check Clearing
  • Foreign Draft Issuance
  • Travel
  • Technology Companies
  • Payroll
  • Healthcare
  • Nonprofit
  • Partnerships

Currency Market Trend Analysis: January 09, 2017

Ryan January 9th, 2017
Currency Market Trend Analysis: January 09, 2017


By The Numbers: Your FX Week In Review

Foreign currency value versus USD is decreasing
Foreign currency value versus USD is increasing
*Indicators show the percent change over the past week.

Currency Calendar

Date Holiday Country
January 09, 2017 Labor Market Conditions Index (Dec) USA
January 09, 2017 Bank of Canada Business Outlook Survey  Canada
January 11, 2017 Non-Monetary Policy's ECB Meeting Europe
January 12, 2017 ECB Monetary Policy Meeting Accounts Europe
January 13, 2017 Fed's Janet Yellen Speech USA


Upcoming bank holidays and impactful report releases for select countries.


Market Analysis

CAD - Canadian Dollar

The Canadian dollar started the first week of 2017 in positive territory gaining close to 200 points but major players maintain a bearish outlook for CAD throughout 2017.

Near-term domestic risk is elevated as we look to the release of the Bank of Canada’s Business Outlook Survey and consider its implications for policymakers ahead of the January 18 Bank of Canada policy decision.

There are four key events to watch this week which could influence the market.  

  1. BoC Business Outlook Survey:  This survey is released on Monday and provides a snapshot of general business conditions and the level of optimism in the business sector.
  2. Housing Starts: Housing Starts dropped to 183 thousand in November, short of the forecast of 191 thousand. The estimate for December stands at 187 thousand and comes out on Thursday.
  3. Building Permits: Coming out on Tuesday, Building Permits tends to show strong fluctuation, making accurate estimates a tricky task. In October, the indicator bounced back with a strong gain of 8.7%, crushing the forecast of 1.6%.
  4. New Housing Price Index: Also released on Thursday with the Housing Starts, this housing inflation indicator improved to 0.4% in October, above the forecast of 0.2%. The estimate for the November release is 0.2%.


GBP - British Pound

The Pound has fallen more than 2% since last Thursday against the USD and is under renewed pressure this week as traders react to PM May’s suggestions that she is willing to go for a full Brexit rather than trying to maintain the UK’s access to the common market.

The longer-term picture for 2017 looks very unsteady for the pound. This week’s key events to keep an eye on are highlighted below.

  1. Manufacturing PMI: Tuesday, 9:30. The PMI dipped to 53.4 points in November, shy of the estimate of 54.4 points. Little change is expected in the December report.
  2. Construction PMI: Wednesday, 9:30. Construction PMI was almost unchanged in November, posting a reading of 52.8. This figure beat the forecast of 52.3. The estimate for December stands at 52.6.
  3. Net Lending to Individuals: Wednesday, 9:30. This indicator is closely related to consumer spending, a key driver of economic growth. In October, the indicator climbed to GBP 4.9 billion, above the estimate of GBP 4.8 billion. No change is expected in the November report.
  4. Services PMI: Thursday, 9:30. The index rose to 55.2 points in November, pointing to expansion in the services sector. This was above the forecast of 54.2 points. The estimate for the December report stands at 54.8 points.
  5. BOE Chief Economist Andy Haldane Speech: Thursday, 13:00. Haldane will speak at an event in London. Analysts will be looking for clues as to the BoE’s future monetary policy.


EUR - Euro

During the first week of 2017, the EURO dipped to new 14-year lows but recovered quickly thanks to weakness in the USD. 

Another busy week lies ahead for investors as Europe releases trade balance and industrial output reports while plenty of US data, Fed talk and President-elect Trump’s news conference are all liable to influence market thinking.


FX Market Pro

Corporations & Financial Institutions: Want to get ahead of the curve for the upcoming week? Get CXI's currency market trend analysis sent directly to your inbox weekly.

About the Author:Ganesh Persaud - Corporate Trader

Ganesh 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?

About Currency Exchange International
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 90 foreign currencies, multi-currency cash passport’s, traveler’s cheques and gold bullion coins and bars. For financial institutions and corporations, our services include the exchange of foreign currencies, international wire transfers, global EFT, the purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com


Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.



This publication has been prepared by Currency Exchange International for informational and marketing purposes only. Opinions, estimates and projections contained herein are our own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed reliable, but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which Currency Exchange International, its affiliates or any of their employees incur any responsibility. Neither Currency Exchange International nor its affiliates accept any liability whatsoever for any loss arising from any use of this information. This publication is not, and is not constructed as, an offer to sell or solicitation of any offer to buy any of the currencies referred to herein, nor shall this publication be construed as an opinion as to whether you should enter into any swap or trading strategy involving a swap or any other transaction. The general transaction, financial, educational and market information contained herein is not intended to be, and does not constitute, a recommendation of a swap or trading strategy involving a swap within the meaning of U.S. Commodity Futures Trading Commission Regulation 23.434 and Appendix A thereto. This material is not intended to be individually tailored to your needs or characteristics and should not be viewed as a “call to action� or suggestion that you enter into a swap or trading strategy involving a swap or any other transaction. You should note that the manner in which you implement any of the strategies set out in this publication may expose you to significant risk and you should carefully consider your ability to bear such risks through consultation with your own independent financial, legal, accounting, tax and other professional advisors. All Currency Exchange International products and services are subject to the terms of applicable agreements and local regulations. This publication and all information, opinions and conclusions contained in it are protected by copyright. This information may not be reproduced in whole or in part, or referred to in any manner whatsoever nor may the information, opinions and conclusions contained in it be referred to without the prior express written consent of Currency Exchange International.


Tags: Ceifx, Resources