Daily Market Analysis


European Session – Euro rises to $1.06; dollar weak ahead of Trump budget speech

Posted on February 27, 2017 at 4:00 pm GMT

The euro strengthened against the dollar on news of more favorable opinion polls for independent French presidential candidate Emmanuel Macron. The US dollar lagged against most major counterparts despite upbeat durable goods orders data, as investors await US President Donald Trump’s address to Congress on Tuesday when he is expected to reveal details of his spending plans and tax cuts. Trump’s speech may disappoint the markets if he does not give more specifics in terms of numbers or a more [..]


Asian Session – Dollar lacks momentum ahead of Trump speech; Pound falls on Scottish referendum talk

Posted on February 27, 2017 at 7:42 am GMT

Sterling was the worst performing major currency in the Asian session today on reports of a possible Scottish independence vote. The dollar lacked momentum ahead of a raft of US economic data and speeches by President Donald Trump and Federal Reserve Chair Janet Yellen this week. The pound dipped as much as 0.6 percent against the dollar to touch a session low of 1.2390 after a Times newspaper report said UK Prime Minister Theresa May could agree to a new [..]


European Session – Trump reflation trade in doubt again, dollar slightly down

Posted on February 24, 2017 at 4:34 pm GMT

Barring Canadian inflation data, US new home sales, and the final print of the University of Michigan consumer sentiment index there were no important economic data releases hitting the markets today. Market participants were for the most part digesting developments in the political scene and placing positions accordingly. The dollar has gained significantly on expectations of fiscal reforms by the Trump administration. However, US Treasury Secretary Steven Mnuchin’s latest comments on expecting tax reforms to start benefitting the economy next [..]


Asian Session – Gold at 3-month highs on softer dollar after Mnuchin comments

Posted on February 24, 2017 at 7:58 am GMT

Gold consolidated gains at a 3-month high as the US dollar was on track to end the week with losses. The greenback touched a 2-week low against the yen on Thursday after being weighed by disappointing US jobless claims data and US Treasury Secretary Steven Mnuchin’s remarks. The number of Americans applying for unemployment benefits increased by 6,000 to 244,000 in the week ending February 18 from the previous week’s revised total of 238,000. Expectations were for jobless claims to [..]


Asian Session – Euro recovers as French election concerns ease; dollar steadies after drop following FOMC minutes

Posted on February 23, 2017 at 8:11 am GMT

The US dollar fell sharply after the release of the FOMC minutes late on Wednesday. Despite saying that a rate hike would be appropriate ‘fairly soon’, the minutes of the January 31- February 1 Fed policy meeting did not pinpoint a March hike. Since the markets did not view the minutes as hawkish as was hoped for, the dollar was sold off, and it fell below the key 113-yen level briefly. In the minutes, there appeared to be a lack [..]


European Session – Dollar picks up ahead of FOMC minutes; yen outperforms; pound weighed by data

Posted on February 22, 2017 at 3:18 pm GMT

The US dollar was stronger against most major currencies except against the yen, which broadly outperformed. The euro was weak on French election jitters. The main focus of the markets was on the upcoming FOMC minutes. The euro hit a fresh one month low against the dollar at 1.0493 after dipping below the key 1.05 level for the first time in six-weeks. The single currency was pressured mainly by political developments rather than by economic data. Concerns over the upcoming French [..]


Asian Session – Dollar falls against yen ahead of FOMC minutes; euro under pressure on political woes

Posted on February 22, 2017 at 8:34 am GMT

The dollar was weaker against the yen as markets await the FOMC minutes due later in the day for clues about the Fed’s views on interest rates. The euro remained under pressure by European political concerns. The yen was supported by comments from Bank of Japan Governor Haruhiko Kuroda who said that the chance of negative rates is low in the near future. Meanwhile, Japanese Finance Minister Taro Aso made similar remarks. The dollar slipped to an Asian session low [..]


European Session – Euro falls despite robust PMI numbers; Dollar broadly stronger

Posted on February 21, 2017 at 4:34 pm GMT

The most important economic releases for the day pertained to flash PMI estimates out of the Eurozone and the US, whilst the day had important central bank figures, such as the Bank of England’s Governor Mark Carney, appearing for a speech. The US dollar was gaining across the board today on rising expectations of a March Fed rate hike. The dollar gained against all six currencies that make up the dollar index as the index rose to 101.49, marking a [..]


Asian Session – Dollar strength weighs on yen

Posted on February 21, 2017 at 7:08 am GMT

The US dollar strengthened during the Asian session on Tuesday, helped by higher US Treasury yields. The yen weakened despite upbeat manufacturing PMI data out of Japan today. The aussie slid against the greenback to move off an early session high of 0.7690. The Reserve Bank of Australia published minutes of its latest policy meeting. The minutes had an optimistic outlook regarding the prospects of Australia’s economic growth. This view diminishes the scope for rate cuts in the near future. [..]


European Session – Pound up as Lords begin Brexit bill debate; Dollar range-bound in holiday-thinned trading

Posted on February 20, 2017 at 3:46 pm GMT

The US dollar was stuck in a tight range on Monday as markets struggled for direction in the absence of any major data releases and with US markets closed for President’s Day holiday. Having moved away from Friday’s one-week lows in Asian trading, the greenback flat-lined against the yen in today’s European session to hover around 113.10 yen. Traders ignored solid economic indicators out of the US last week, as well as a more hawkish Yellen, to drive US treasury [..]

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