This week in Forex Trading – Recoveries and Variables

This Week in Forex Trading

EUR / USD

Currently, the EUR/USD is trading close to the 1.07 level, recovering from a drop to the 1.0670 region caused by recent strength seen in both the USD and treasury yields. Later today, the pair is due to be influenced by a batch of economic reports, with the Eurozone final CPI report due ahead of ECB minutes, US CPI, jobless claims and housing starts and Fed Chair Yellen’s testimony.

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The Economic Calendar shows the increasing percentage of Consumer price index.

Source: Iforex

Brexit American style drives US yield higher

A Trump victory now presents many unknown variables.  During his candidacy, Trump said he would build a wall around the southern border of the United States with Mexico, cut up trade deals including oil and remove regulation such as the Dodd Frank law.

Donald Trump Putting Thumb-Up in Front of Trump Wall

 The dollar has also recouped some lost ground, though is still showing a 1.8% loss versus the yen.  Gold, which had been showing a gain of more than 3%, but lost some of those gains.

The European seem to be pretty shaken, knocking down risky assets.

Source: Iforex

Japanese and  German Q3

Japanese Q3 was expected to grow 0.9% but it increased up to 2.2%. Capital expenditures on the other hand were flat compared to forecasts of a 0.1% increase.  External demand, added 0.5% to growth due to a bounce in exports.

On the other hand, German Q3 came weaker than expected. The expected was 0.3% and it came to 0.2%. the Economy Ministry warned about this being possible so it came as not big a surprise after all.

Source: Iforex