Weekly FX Update – 27 July 2017 (Video)

In this week’s webinar, Senior Market Analyst Craig Erlam gave his analysis on EURUSD (9:00), GBPUSD (11:47), EURGBP (14:03), AUDUSD (15:13), USDCAD (16:48), NZDUSD (19:14), USDJPY (20:53), GBPJPY (22:47) and EURJPY (25:16).

Earnings Dominate as Stocks Eye More Record Highs

Craig also discusses some of the macro themes that have dominated markets this week and looks ahead to next week’s key events. Corporate earnings season has been front and centre for much of this week but next week may see central banks come back to the fore, with the Reserve Bank of Australia and Bank of England meeting, while the US jobs report could give the Federal Reserve some food for thought.

In what appears to be a coordinated move, a number of central banks have given a more hawkish impression in recent months, with the Bank of Canada following through with rate hike a couple of weeks ago. The last BoE meeting saw three policy makers also vote in favour of a 25 basis point increase while others have since suggested they could follow suit. With inflation having cooled last month, it will be interesting to see whether policy makers take a step back from such action or continue to push for higher rates.

FOMC Deflates Dollar Inflates Oil and Gold

Friday’s jobs report will put attention back on the Fed after the central bank this week refrained from raising interest rates while hinting at balance sheet reduction in September and once again noting the slower pace of inflation. With markets increasingly pricing out another rate hike this year, next week’s inflation and jobs data will be of keen interest to traders.

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