Currency Market Trend Analysis: June 12, 2017

Ryan June 12th, 2017

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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	Releases / Holiday	Country
June 12, 2017	Monthly Budget Statement	USA
June 13, 2017	Wholesale Price Index (May)	Germany
June 13, 2017	Economic Sentiment Report (June)	Germany
June 13, 2017	Consumer Price Index (May)	UK
June 13, 2017	Economic Sentiment Report	Europe
June 14, 2017	Retail Sales Report (May)	USA
June 14, 2017	Interest Rate Decision	USA
June 14, 2017	Monetary Policy Statement	USA
June 15, 2017	Interest Rate Decision	UK
June 16, 2017	Interest Rate Decision	Japan
June 16, 2017	Consumer Price Index	Europe
June 16, 2017	Labor Market Conditions Index (May)	US

Upcoming bank holidays and impactful report releases for select countries.

Market Analysis

CAD - Canadian Dollar

The CAD opened last week at 0.7413 and closed at 0.7444.

The CAD gained against the USD last week, in part due to Canada’s May jobs report; Canada added 54.5 thousand jobs, far exceeding expectations of 11.5 thousand. The BoC is not expected to raise rates and no major economic news is due this week.

The CAD is likely to remain stable in near future, but may appreciate slightly against the USD as softening growth and political turmoil weigh on the USD.

GBP - British Pound

The GBP opened last week at 1.2888 and closed at 1.2737.

The GBP fell 1.17% against the USD last week, as the market reacted to a hung parliament, political uncertainty, and a broad selling of tech stocks. Markets seem to be concluding that the election may have reduced the odds of the UK exiting the single market – likely tempering the volatility created by this historic event. The BoE is not expected to raise interest rates at its meeting on the 15^th.

The market has remained relatively stable in the wake of the hung parliament and should continue this trend through the week.

1. Consumer Price Index (May): Tuesday June 13.

2. Interest Rate Decision: Thursday June 15.

EUR - Euro

The Euro opened last week at 1.1280 and closed at 1.1189.

Over the past week, the Euro has depreciated 0.81% against the USD. This depreciation was in part due to the ECB cutting its inflation forecast in its June 8 statement. Merkel has signaled that the EU is ready to begin Brexit negotiations within the next few days. She expects that negotiations will carry forward as expected, despite the UK election result. Expect stable rates as markets reaction to last week’s political turmoil tempers.

Tuesday will see the release of the June Economic Sentiment Reports for Germany and the European Monetary Union.

1. Wholesale Price Index (Germany - May): Tuesday June 13.

2. Consumer Price Index (Europe - May): Friday June 16.

FX Market Pro

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About the Author

Collin McAliley - Financial Analyst

Collin 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?

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