Today’s Key Market Drivers: 20th August 2018
As I suspected the selling pressure that was in the market in the middle of the week evaporated on Friday and we saw a pop higher for the AUD, NZD, and Euro against the US Dollar. Traders were eager to sell out of long US Dollar positions as China v US trade talks get closer and the annual Central Bankers summit in Jackson Hole, Wyoming looms. I suspect the US Dollar will continue to weaken in the early part of this week and the Euro, Aussie and Kiwi Dollars will benefit in the short to medium term. Long term I am still very bearish on the AUD and NZD against the US Dollar, however, this week the currency price action and fundamentals looming tell me the US Dollar may take a breather for a few days.
The Pound continues to struggle, however, I suspect in coming weeks a deal with Brussels will be done and a move back higher isn’t too far away. It didn’t move higher with the AUD, NZD, and EUR on Friday because of the Brexit shadows still hanging over it but a deal in my view will be done and when it is, expect to see a sizeable shift back higher.
The economic calendar has no high impacting news early this week and the only two pieces of high impacting news worth noting are the release of the US Fed Minutes on Wednesday and the beginning of the 3 Day Central Bankers Symposium in Jackson Hole on Friday. There is plenty of Medium impacting news, however, none of it is going to grab the market’s attention for too long.
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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 keynote 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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