The Australian dollar snatches the top spot this week, While the forex dollar almost received the much-awaited turn back this week.
This week’s currency trend prediction was primarily driven by economic data and the global coronavirus pandemic.
Fight on coronavirus, and geopolitical tension also affected the forex trend of the g7 currencies.
Forex Signals Fundamentals
The forex signals that affected currency trend predictions in the week include the coronavirus pandemic, covid 19 drugs, geopolitical tensions, and the economic data.
Coronavirus Pandemic
As on Sunday, 9th Aug, the total number of confirmed cases globally stood at 20million. On a weekly basis, the total confirmed cases went higher by1.81 million, slightly higher than previous weeks’ rise by 1.80 new cases.
The Fight Against Covid 19
Eli Lilly, a US drug manufacturer, announced on Monday that it was moving to 3rd phase clinical trials. The phase will entail testing the drug in nursing homes, among residents and employees diagnosed with the disease.
Geopolitical Tensions
On Thursday, US President Donald Trump issued an presidential order to shut down Tik Tok and We Chat apps Within 45 days in the US. Both of these Chinese apps are considered a security threat to the US government.
This move continued to fuel the geopolitical tensions between the two countries, and China could retaliate soon.
The trade war between Canada and the US was reignited on Thursday when President Trump reintroduced Tariffs on Aluminum products from Canada. In return, Canada promised retaliatory measures against the US.
Economic Data
The gold price slides down over the week, slowing down a two-month bullish run for the precious metal. Oil prices also settled lower by almost 2% by the close of the week.
Changes in metals and oil prices indicate world economic performances. Other economic data also impacted the currency trend prediction of the g7 currencies.
Most countries posted positive results to support their currencies and other currencies too.
Forex Trend Of The G7 Currencies
Table; Currency trend prediction of g7 currencies performance summary.
| Currency pair | 3rd Aug | 9th Aug | Average price | Percentage change | remarks |
| USD | 93.507 | 93.412 | 93.183 | 0.098 | drop |
| GBP/USD | 1.3075 | 1,3053 | 1.3091 | 0.2827 | drop |
| EUR/USD | 1.1763 | 1.1788 | 1.1819 | 0.1019 | up |
| USD/JPY | 105.96 | 105.93 | 105.75 | 0.03 | drop |
| USD/CHF | 0.9178 | 0.9125 | 0.9124 | 0.0438 | drop |
| USD/CAD | 1.3391 | 1.3384 | 1.3333 | 0.2274 | drop |
| AUD/USD | 0.7124 | 0.7158 | 0.7174 | 0.2100 | up |
| USD/NZD | 1.5124 | 1.5143 | 1.5073 | 0.3778 | up |
USD – A Near Comeback
A marathon run of 6 successive weeks trading in the reds almost came to an end for the American dollar. In this week’s currency trend prediction ending 9th Aug, the forex dollar declined marginally by 0.09% to close at 93.435.
In the previous week, it had fallen by 1.15%. The dollar reacted mainly to economic data, the US stimulus package updates, and coronavirus pandemic.
The US posted a positive economic report that nearly turned around six weeks long losses of the dollar. Early in the week, the dollar went upwards, supported by the Economic data. The private sector and manufacturing improved tremendously.
However, from Tuesday to Thursday, the forex dollar dropped but traded in the green on Friday. And for the first time in three weeks, the weekly jobless claims went down on Thursday, adding more support to the greenback.
In the US, the total number of infectious viruses went up to 5 million. However, statistics indicated that this week’s increase by 393k was lower than the previous rise by 454k. Despite the covid 19 threat, the US administration failed to reach an agreement on the coronavirus stimulus package.
The showstopper for the dollar was the labor market numbers released on Friday – that delivered a 0.70% rally for the greenback. The unemployment rate dropped to 10.2% while the non farm payrolls increased by 1.763k.
It was enough to steer the dollar on the upswing and also support the American equity markets.
GBP/USD
The United Kingdom had a quiet economic calendar over the week. Its currency trend prediction was driven by financial data, which was mainly skewed to the negative.
Manufacturing, production, and service sector went on the downswing except for the construction sector that registered positive growth.
The major event over the week was the Bank of England’s (BOE) monetary policy deliberation.
As expected, the BOE did not alter the interest rates. However, the bank painted a gloomy economic outlook for Great Britain that weakened the euro forex trend.
The bank predicted that Britain’s economic recovery of Britain from the coronavirus pandemic would turn around early next year while unemployment rates would go up.
In the week ending 9th Aug, the pound dropped 0.25% to close at 1.3052, having rallied strongly by 2.27% in the previous week.
Currency trend prediction showed that the pound’s performance was negatively affected by the strengthening of the US dollar.
Early in the week, speculations on another lockdown possibly pulled down the sterling pound.
EUR/USD
The economic calendar for the Eurozone was full and busy. Over the week, the euro rose by 0.08% to close at 1.1787 but lower than the previous week’s gain of 1.05%.
On Friday, the euro lost a whopping 0.76% to undermine earlier gains of the week. The euro’s overall positive performance was supported by positive economic updates and positive sentiments from the Eurozone. Manufacturing went up from 47.4 to 51.1.
Notably, industrial production and retail sales were positive, uplifting the euro while the service sector showed mixed numbers across the member states. However, the construction sector slowed down.
USD/JPY
Meanwhile, in the far east, Japan had a busy week on the financial front. Inflation figures, GDP, consumer spending, and the private sector all skewed positive and joined forces to support the yen’s performance.
The japan economy shrunk by 0.6% as earlier predicted, and the production went upwards from 45.0 to 45. 4 better than an earlier projection of 45.2.
Impressively, Japanese household spending went upwards by 13% to reverse the previous drop by 16.2%. However, it closed in the reds by 0.09% to close at 105.92.
A significant loss registered on Friday 0.35% delivered the week’s loss for the yen. In the previous week, it had gained 0.29% against the American dollar.
Positive forex signals thanks to improved US equities and coronavirus drugs weighed heavily on the Japanese yen. Also, positive economic data from riskier markets such as NewZealand and Australia worked to undermine the yen.
Furthermore, positive global sentiments emanating from better than expected improved weekly jobless claims pushed the yen down.
USD/CHF
The Switzerland franc fluctuated over the week but finished on the positive territories.
Economic data and positive moods uplifted financial data, and positive moods uplifted its performance. The Swiss franc ended 0.0438% lower over the week to close at 0.9125, having started the week at 0.9178.
The Swiss franc consumer price index dropped by 0.2% while industrial production went upwards. However, positive forex signals on coronavirus drugs and the US equities’ improvement worked against the Swiss franc.
USD/CAD
A relatively quiet week for the loonie on the economic diary. Currency trend prediction for Lonnie was driven by financial data, with the primary focus being employment numbers and production, which were positive.
Employment records went up by over 418k, pulling down the employment rate to 10.9% from12.3%. On the other hand, production was quite impressive, rising from 58.2 to 68.5.
Lonnie received support from the improvement of oil prices and positive global sentiments. However, the earlier gains of the Canadian dollar in the week was significantly overshadowed by the strengthening of the US dollar on Friday.
At the end of the week, the loonie improved by 0.21% to close at 1.3384, much better than the previous week’s gain of 0.02%. Notably, on Friday, the loonie lost colossally 0.58% of its earlier weeks’ gains due to the greenback’s strengthening.
AUD/USD Top Performer 
Elsewhere, the Australian dollar to usd forecast encountered a tough week to output mixed performances. However, it managed to settle higher by 0.20% to close at 0.7157 emerging top performer of the week’s currency trend prediction.
Despite its excellent performance, Australia had a relatively silent week on the economic front. The Aussie reacted to positive skewed forex signals from economic data released that included manufacturing, export, and retail sales figures.
Manufacturing index improved from 51.5 up to 53.5 while trade export expanded from A$8,025bn to A$8.202bn. Despite the coronavirus pandemic, Australia’s retail sales went upwards of 2.7%.
Also, on Tuesday, the Reserve Bank of Australia (RBA) released a monetary policy decision. As expected, the RBA did not alter its monetary policy and maintained it at 0,25%. However, the conclusion of the bank had minimal impact on the Australian dollar to usd forecast.
Australia recorded a new high of infectious disease and deaths. Also, Australia received undue pressure from the improvement of the American dollar and forex signals from the RBA.
The government of Australia announced that coronavirus infections undermined its economic recovery, and unemployment figures would remain high for many months.
The Aussie received more support from positive sentiments attributed to coronavirus drugs and the improvement of the US equities. Positive economic data from China and NewZealand and reduction in the US weekly jobless claims added more support to the Aussie.
USD/NZD Biggest Loser
New Zealand had a relatively silent economic week on its calendar. The Kiwi fell by 0.36% to close at 0.6605. Currency trend predictions over the week suggest that the kiwi dollar received a massive blow on Friday to drop by 1.24% to be the week’s biggest loser.
Much support for the kiwi dollar came from positive global sentiments that ignited risk appetite.
It was primarily uplifted by employment figures and 3rd quarter inflation expectations, both of which were positive. The inflationary rates are expected to go up from 1.2 to 1.4% in the third quarter.
Unemployment figures went down in the second quarter to 4%, contrary to early projection, despite the infectious viral disease.
However, the gains made at the beginning of the week were overshadowed by two factors.
First, China posted good financial data, and second, the US recorded impressively improved labor market numbers to sink the Kiwi.
Conclusion
Currency trend predictions indicate that the heavy losses recorded on Friday by all fx currencies were due to the dollar’s excellent performance.
However, the dollar’s strong performance on Friday was not enough to pull it out of the reds.
