Currency Market Trend Analysis: August 29, 2016
USD - U.S. Dollar
The U.S. dollar is on an upward trend as Janet Yellen pointed out during the Fed meeting on Friday “Indeed, in light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.”
Still the future outlook depends on more results from U.S. data on inflation and consumer spending that are due this week. If these reports support a strong U.S. dollar and economy, the chances of a Fed rate hike are more likely to increase over the next couple of months.
GBP - British Pound
Today marks a public holiday in the United Kingdom - Summer Bank Holiday. The rate of the British pound also took the day off as it hit a one week low 1.30 against the U.S. dollar.
The pound will look towards new reports regarding consumer credit due on Tuesday and manufacturing due on Thursday. These reports will provide insight for the next possible move, which could breathe some positive life into the pound.
EUR - Euro
The euro traded at a low of 1.11 against the U.S. dollar as talks of a higher U.S. interest rates were in the realm of a higher possibility. Either way the Eurozone is forecasted towards a more bearish outlook, leaving many uncertain about the economic growth.
These factors have left the euro in a mixed path that will become clearer once the European Central Bank (ECB) meeting takes place next month on Thursday, September 8.
Currency Exchange Reference Rates
CXI publishes U.S. dollar foreign exchange reference rates, or interbank market rates, for seven currencies as market indicators only. These reference rates are only meant to be used for information purposes and are not rate quote solicitations and don’t reflect the rates at which actual transactions can be made. All foreign currency transactions, either banknote or electronic, will be made at percentages off of the interbank market rate.
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