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

Currency Market Trend Analysis: July 31, 2017

Ryan July 31st, 2017
Currency Market Trend Analysis: July 31, 2017

 

 

Looking For International Payments Solutions?

Get access to our free whitepaper and unlock everything you're missing.


 

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 Entity
July 31, 2017 CPI (Jul) EMU
July 31, 2017 Unemployment Rate (Jun) EMU
August 1, 2017 Unemployment Rate (Jul) Germany
August 1, 2017 Markit Manufacturing PMI EMU
August 1, 2017 GDP (Q2) EMU
August 1, 2017 Markit Manufacturing PMI USA
August 2, 2017 ECB Non-Monetary Policy Meeting EMU
August 3, 2017 BoE Interest Rate Decision UK
August 3, 2017 BoE’s Governor Carney Speech UK
August 4, 2017 Unemployment Rate (Jul) USA
August 4, 2017 Unemployment Rate (Jul) Canada

Upcoming bank holidays and impactful report releases for select countries.

Market Analysis

CAD/USD - Canadian Dollar

The CAD opened last week at 0.7976 and closed at 0.8040. 

The CAD traded up 0.81% against the USD, after consolidating some of the previous weeks’ gains. This appreciation comes off of higher than expected Canadian May GDP figures (0.6% vs. 0.2%) and continued political uncertainty in the United States. This appreciation was also supported by rising crude oil prices. Weak US personal consumption data has reduced expectations for US rate hikes in the near-term. This has spurred trading against the USD in the options markets, exacerbating recent downwards pressure. 

This will be a data-light week for the CAD. The CAD may currently be overbought, but the price momentum is still strong. Some consolidation is likely, but the CAD may continue to trade higher throughout the week.

 

1. Unemployment Rate (Jul): Friday, August 4.

 

 

GBP/USD - British Pound

The GBP opened last week at 1.2994 and closed at 1.3124.

The GBP appreciated 1.00% against the USD over the past week, recovering its losses from the preceding week. This recovery was largely supported by politics and data driven USD weakness, rather than positive UK economic data.  

Data-wise, the week is quiet until Thursday, which will see an interest rate decision and speech by Governor Carney. It is expected that the BOE will not increase rates. The cable is likely to appreciate throughout the week, though to a lesser extent than last week. Better-than-expected US unemployment and Markit PMI data could upset this trend. 

 

1. BoE Interest Rate Decision: Thursday, August 3.

2. BoE Governor Carney Speech: Thursday, August 3.

 

 

EUR/USD - European Union Euro

The Euro opened last week at 1.1663 and closed at 1.1756.

Over the past week, the Euro appreciated by 0.80% against the USD, amid US political uncertainty, and mixed European data. This marks the first close above 1.17 since Jan 2015. Eurozone core annual inflation is estimated to have grown by 1.2% in July, above expectations, while unemployment fell to 9.1%, below the 9.2% expectation. This week may see some consolidation, dependent upon Wednesday’s ECB policy meeting, as well as Markit PMI data. The Euro is straying into overbought territory, but its momentum is holding steady. 

 

1. CPI (EMU, Jul): Monday, July 31.

2. Unemployment Rate (EMU, Jun): Monday, July 31.

3. Unemployment Rate (Germany, Jul)Tuesday, August 1.

4. Markit Manufacturing PMI (EMU, Jul): Tuesday, August 1.

5. GDP (EMU, Q2): Tuesday, August 1.

6. ECB Non-Monetary Policy Meeting (EMU): Wednesday, August 2.

 


 

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

Collin McAliley

 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?

 

 


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 passports, 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
Archive