Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: We had a solid rally in Friday's Asian session, however the geo-political uncertainty meant the market was happy to square up ahead of the weekend. The next few days do have the potential to be a watershed given the still simmering tensions between the US and Russia over the Middle East, the trade wars that are still going on in the background and the heavy economic data calendar that is also full of important releases. As long as the political situation doesn't worsen, then we see the exchange rate pushing on wards, once Friday's highs are broken again. In the meantime those selling US$ may want to look at this mornings opening levels.
AUDEUR: As per Fridays forecast, the Euro weakened for the second day in a row, pushing to a 0.6335 high despite a small uptick in Germany's inflation report. The market is starting to favour the UK as an investment destination and also has one eye on the European Central Bank's meeting next week - looking for some clarification on their thoughts on inflation and the strengthening Euro/USD exchange rate. As with the US$ note above, once Friday's highs are broken then we should be on our way higher with a 0.65c medium term target.
AUDGBP: The Australian Dollar didn't have as much joy versus the Pound as it did elsewhere. Sterling's continual recovery from the BREXIT lows appears to have so much momentum that the market is ignoring the reports that UK Prime Minister May is under sever pressure for not calling Parliament to get support for the strikes in Syria - as per convention. Instead we seem set to focus on UK Unemployment, Inflation numbers and Retail Sales data that are set to come over the next few days and with all looking healthy may well see us push through the 0.54p level.
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