Today’s Key Market Drivers – 14th August 2017

No major gaps in currency markets this Monday is a sign geopolitical tensions between North Korea and the USA have settled down somewhat after Pyongyang threatened late last week to send 4 missiles Guam’s way mid-August. CNBC reports this morning that “Russian Foreign Minister Sergei Lavrov said there was a Russian-Chinese plan to defuse tensions between the United States and North Korea.” The Russians and Chinese are going to sort out North Korea for the US? Ha ha!

The US Dollar fell on Friday leading into the weekend after US CPI data for July missed economists estimates giving the US Fed reason to be cautious about any interest rate increases in coming months. The US Dollar is close to a 12 month low against the Yen and any further tensions with North Korea could see a new low created.

The Aussie and Kiwi Dollars were off their lows on Friday evening, however, this was more to do with US Dollar weakness rather than Aussie or Kiwi Dollar strength. Both currencies were sold heavily late in the week as the geopolitical war of words reigned down between US and North Korean leaders. If tensions subside then both currencies at these levels may be seen as buying opportunities.

The week ahead shows us there is plenty of high impacting news to come. No major Central Banks reporting monthly statements however the US Fed and ECB’s monthly minutes will be important for the market to digest. Japanese GDP today isn’t likely to surprise so we will likely need to wait until tomorrows UK CPI and US Retail Sales for some data that could be market moving.

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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