Weekly Forex Analysis: Slight appreciation of the dollar

Weekly Forex Analysis: Slight appreciation of the dollar

Analysis Department of Bankinter offers its forecasts for the next behavior currencies:

Eurodollar (€ / USD): Janet Yellen’s statements reinforcing the expectation of rate hikes by the Fed in December appreciated the dollar . Although US macro figures will be distorted by the effect of hurricanes, the dollar should be strengthened slightly against the euro on the situation of domestic politics in Europe / Spain and the greater likelihood that Donald Trump propose a new Fed chairman with a profile more hawkish

Estimated range (week): 1,170 / 1,185.

EUROYEN (€ / JPY): The unexpected announcement of presidential elections in October the yen appreciated at the meeting on Monday to 132 euros . The quote was reversing towards 133 euros / yen and even the good inflation data Friday (+ 0.7% vs. 0.6% exp.) They made him away from that level. A lack of macro, this week we expect a gradual depreciation of the yen to re-test the level of 134 euro / yen .

Estimated range (week): 132.5 / 134.3.

Eurolibra (€ / GBP): The pound consolidated positions in an environment marked by the deterioration in the flow of news -rebaja debt rating to Moody’s- and loss of traction of the economy (GDP rises +1, 5% in the second trimestre2017 vs. + 1.7% vs. + 2.0% estimated in the first quarter 2017).

This week, attention will focus on the evolution of unit labor costs PMI’sy

Estimated range (week): 0.873 / 0.883.

Eurosuizo (€ / CHF):  The franc recovered positions thanks to the improvement in economic sentiment indicators in Switzerland and increased volatility in the markets .

This week the focus will be on the evolution of PMI’sy Inflation. 

Estimated range (week): 1,139 / 1,149.

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