Forex traders will start the new trading week with a light economic calendar which showed New Zealand consumers reigned in their credit card spending for July which posted an unexpected contraction. The the Brazilian IBC-Br Economic Activity Index, expected to show a further slowdown in Latin America’s largest economy, and the US Monthly Budget Statement for July which is anticipated to show another large deficit, are the only economic releases which are likely to get any attention. Will this allow the rally in Silver, a safe haven asset, to extend? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this precious metal.

The focus will remain on the People’s Bank of China as it set the Yuan Reference Rate at 7.0211 which marked the third consecutive where the Chinese central bank set this rate north of the key 7.0000 level. Forex traders are expected to watch out for this rate on a daily basis which will dictate cross-currency flows. Since commodities are priced in US Dollars in the global market, they often enjoy an inverse relationship which means a weaker US currency will drive commodity prices higher. US President Trump is trying to force his own central bank to manipulate the US Dollar and weaken it which would further boost the price of Silver. Is another breakout imminent? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this precious metal.