Forex Weekly Update: US Dollar dropped across the board to Major Currencies

October 21, 2013 in Forex Analysis

US Dollar drops on Debt Ceiling Agreement –  Government Jobs Report to come on Tuesday

Euro at 8 month high vs USD

Euro at 8 month high vs USD

The US dollar was on the defensive across the board last week against the other major currencies in forex market trading as, after much drama, the US government debt crisis was resolved in agreement (for the time being). US stock markets jumped higher on the news that the government will be funded through January 15th and allowed to borrow through February 7, 2014.

The US dollar, meanwhile, was sold off sharply and registered declines for the week against the euro, British pound sterling, Japanese yen, Swiss franc, Canadian dollar, Australian dollar and the New Zealand dollar.

Notably, the US dollar dropped to multi-month lowpoints against the euro (8 month high), the Australian dollar (4 month high) and the New Zealand dollar (5 month high).

NZDUSD approaching the 0.8500 level for 1st time since May

NZDUSD approaching the 0.8500 level for 1st time since May

AUDUSD likely to test the 0.9700 level this week

AUDUSD likely to test the 0.9700 level this week

 

This Week’s Fundamental Outlook – US Non-farm Payroll Government Jobs Report due to hit the market on Tuesday

Added to the economic schedule this week is the release of the US government non-farm payrolls jobs report for September. This market-moving report is due out on Tuesday after having been rescheduled due to the US government shutdown.

On the release schedule for Monday is Germany’s producer price index and the United States existing home sales data.

Tuesday will have the US non-farm jobs report as well as Canadian retail sales and trade balance data from Switzerland.

Wednesday we can look forward to the Australian consumer price index, the bank of England meeting minutes, the latest interest rate decision out of Canada as well as the Canadian monetary policy report and bank of Canada press conference.

Thursday will feature United States weekly jobless claims and new home sales, German and euro PMI data and the consumer price index out of Japan.

Friday we can look forward to the GDP report out of the United Kingdom and the durable goods report from the US.

Please see the full economic calendar for all economic events.
By Zac Storella, CountingPips.com

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