Dollar, pound, yen three strong competition!!!!!!
The foreign exchange market has experienced intense volatility this week, with the US dollar, British pound, Japanese yen, euro and Canadian dollar in focus. This article will take an in-depth look at the movements of these currencies and explore the economic data and events that affect them.
Usd: The dual impact of economic data and policy expectations
Action recap: The dollar gained at the start of the week on falling inflation and resilient consumption, but then came under pressure from lackluster housing data. The complexity of US economic data has led to volatility in market expectations for the Fed's rate cut.
Economic data and events: U.S. housing starts fell in July, as did building permits, pointing to weakness in the housing market. However, the consumer confidence index rose, indicating that consumers are optimistic about the economic outlook.
Analyst view: The Fed is widely expected to start cutting interest rates in September, but expectations for aggressive rate cuts have diminished. Matt Weller at StoneX noted that the dollar gave up some of its gains after the strong consumer data.
GBP: Firm performance on the back of economic data
Trend Review: The pound has been firm this week, helped by a rise in UK retail sales in July and a boost from extra spending during the European Championship.
Economic Data & Events: UK retail sales rose slightly in July, showing the vitality of domestic consumption. In addition, the pound rose on a weekly basis to record its best performance in more than a month.
Analyst view: Despite the uncertainties facing the British economy such as Brexit, the strong performance of the pound in the short term shows the market's positive response to its economic data.
Additional analysis will come later...
Usd: The dual impact of economic data and policy expectations
Action recap: The dollar gained at the start of the week on falling inflation and resilient consumption, but then came under pressure from lackluster housing data. The complexity of US economic data has led to volatility in market expectations for the Fed's rate cut.
Economic data and events: U.S. housing starts fell in July, as did building permits, pointing to weakness in the housing market. However, the consumer confidence index rose, indicating that consumers are optimistic about the economic outlook.
Analyst view: The Fed is widely expected to start cutting interest rates in September, but expectations for aggressive rate cuts have diminished. Matt Weller at StoneX noted that the dollar gave up some of its gains after the strong consumer data.
GBP: Firm performance on the back of economic data
Trend Review: The pound has been firm this week, helped by a rise in UK retail sales in July and a boost from extra spending during the European Championship.
Economic Data & Events: UK retail sales rose slightly in July, showing the vitality of domestic consumption. In addition, the pound rose on a weekly basis to record its best performance in more than a month.
Analyst view: Despite the uncertainties facing the British economy such as Brexit, the strong performance of the pound in the short term shows the market's positive response to its economic data.
Additional analysis will come later...
Note
Jpy: The interweaving of policy moves and sentiment
Action recap: The yen has been weak overall this week, and despite Friday's drop in the dollar against the yen, the Japanese currency is still on track for its biggest weekly loss since June.
Economic data and events: Policy changes by the Bank of Japan and the market's assessment of the economic outlook are the main factors influencing the movement of the yen. Comments from Bank of Japan Deputy Governor Shinji Uchida brought calm to markets.
Analyst view: Despite the yen's weakness this week, traders have dampened expectations of interest rate cuts by other major central banks, showing the market's mixed view of the currency.
Note
Eur: Steady performance amid USD weakness
Action recap: The euro hit a high for the year amid dollar weakness, but uncertainty over European growth momentum limited further gains.
Economic data and events: Despite the overall stability of European economic data, the market's concern that the growth momentum in Europe may be stalling affected the direction of the euro.
Analyst view: Will take advantage of the decline in the dollar to add to long positions, but cautious about European growth momentum and the risk of tariffs during the U.S. election.
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