19.08.2016 Daily Market Analysis

In a light Asian data day, both the Japanese yen (JPY) and Australian dollar (AUD) weakened against the US dollar (USD), with the market correcting the continued plunge as well as being cautious amidst the US Federal Reserve’s uncertainty. Despite some finally positive data from the US, the greenback fell to its lowest level since June 24 - the day the UK public voted to leave the European Union. The Philadelphia Fed Business Outlook Survey, however, indicated improved optimism coming in at 2, higher than the market expectation of 1.4 as well as the previous level of-2.9. Meanwhile, jobless claims came in at 262K, lower than the previous 266K as well as the market expectation of 269K.

Earlier in the day, the UK released month on month Retail Sales which came in at an impressive 1.4%, much higher than the expectation of 0.1% and the previous reading of -0.9%. This news made the British pound (GBP) the best performing currency on Thursday. The second best performing currency yesterday was the Canadian dollar (CAD), with the USDCAD posting the ninth straight day in the red. This strength of the Canadian dollar coincides with the rise in oil prices, which reached the highest levels since June 7.

There will be more data from the UK today as the Office for National Statistics releases the figures of the Public Sector Net Borrowing, with the market expecting a budget surplus. The biggest data for the day, though, will be from Canada. Statistics Canada will be releasing figures for the month on month Consumer Price Index as well as month on month Core Retail Sales.


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