Market Commentary


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Weekly Commentary 20 - 24 November 2017

The Sterling had a moderately up week last week; the second consecutive week in a row. The UK currency opened the week around 1.31601 and closed the week around 1.32141; some 54-pips higher. The positive trajectory in the sterling was caused by a host of underlying positive data from the UK as well as widespread expectation of the central bank looking to further normalize monetary policy in 2018. In the coming week, investors will be paying attention to Inflation Report Hearings on Tuesday, GBP data on Thursday, and Mortgage Approvals on Friday.

The Euro had an up-week last week, opening around 1.16560 and closing the week around 1.17874 against the dollar. This up move was helped along by the release of the EU September current account which recorded a surplus of €37.8 billion, beating expectations and the previous reading of €34.5 billion. In the coming week, investors will be paying attention to German PPI and a Draghi speech on Monday, German GDP and Euro-wide PMI on Thursday and German Business Climate on Friday.

The Dollar had a negative week last week against the Yen as a result of a week of negative news releases. A slew of cautious remarks from Fed officials may continue to dampen the appeal of the greenback, with USD/JPY at risk of exhibiting a more bearish behavior ahead of the upcoming U.S. holiday. In the coming week, investors will be paying attention to Initial Jobless Claims and FOMC minutes on Wednesday, as well as Markit PMI figures, set for release of Friday.

The Aussie had a big down week last week opening around 0.76498 and closing around 0.75638 against the US dollar. This was as a result of weaker commodity prices as well as disappointing jobs figures which will most likely result in the RBA maintaining a dovish stance for the foreseeable future. In the coming week, investors will be paying attention to RBA’s Meeting Minutes on Tuesday, as well as Construction Work on Wednesday.

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