The main story of Friday morning is a weakening of AUD and a slight rise of the euro. Both currencies gained a lot recently, especially the Australian dollar. But today a correction occurs, which could be an interesting opportunity to join the upward trend. Speaking on the upward moves, its also worth mentioning the European currency that continues its impressive rally.
The Antipodean currencies are among top movers in G10 after speeches of RBA’s Debelle as well as NZ’s finance minister Steven Joyce. Let’s begin with the former. Remarks pertaining to a lack of importance of a discussion about a neutral rate being at 3.5% along with rising AUD acting not in favor of the economy seemed to have the most impact on AUD which is the worst performing currency. Let us recall that we called into question yesterday whether the RBA still needs a rate hike give a massive surge in the exchange-rate.
The European equity markets have kicked off the day with losses which began yesterday after the ECB’s press conference along with an expansion of the probe into Trump’s business transactions. Although, governor Draghi did not deliver too many hints regarding a possible act as soon as September, a lack of denial was treated as if all options remain on the table, hence a possibility that the ECB will begin winding down its balance sheet is still alive.
Bitcoin gained as much as 16% yesterday on mounting exuberance that a split of the virtual currency will be ultimately avoided. We got some reports yesterday that about 85% of the miners who deploy costly computers to verify transactions and act as the spine of the blockchain technology have signaled they are willing to run software which aims to bridge an ideological gap that has threatened to divide the digital currency. Keep in mind that the software, known as SegWit2x, is to be revealed today.
Today’s macroeconomic calendar is relatively light with regard to many currencies in G10. However, CAD traders could have much to do as two crucial readings are scheduled for today. Taking account of a recent massive increase of the Canadian collar one could suppose that risks regarding new macro prints appear to be tilted to the downside. Beside the Canadian data, there is little to see.