Daily Market Analysis

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Forex Market Review (European Session) – Euro still buoyed by Macron win; Loonie under pressure from Trump

Posted on April 25, 2017 at 3:01 pm GMT

Markets remained in risk-on mood in European trading on Tuesday with the euro nudging further upwards against most of its major peers, while the safe-haven yen extended its declines. European and US equities also continued to make gains on the back of Sunday’s French election result where the centrist Emmanuel Macron became the frontrunner to win the second round on May 7. The euro was pushing towards fresh highs against the US dollar as it powered ahead to hit a [..]

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Forex Market Review (Asian Session) – Euro steady while yen and gold ease; Canadian dollar weakens

Posted on April 25, 2017 at 7:51 am GMT

The euro remained steady, near five-month highs against the dollar, while the yen and gold retreated as the outcome of the French elections dampened demand for safe havens. Markets shrugged off North Korean artillery drills carried out today to mark the 85th anniversary of the Korean People’s Army. Currency markets were relatively quiet during Asian trading due to a lack of key economic data releases as well as a public holiday in Australia and New Zealand, which left investors to [..]

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Forex Market Review (European Session) – French election outcome dominates markets; risk-on appetite resumes

Posted on April 24, 2017 at 3:01 pm GMT

There were some economic releases hitting the markets during today’s European session trading, including the German Ifo survey measuring business morale in Europe’s largest economy. But the outcome of the first round of French presidential elections was undoubtedly the factor underlying most major movements in financial markets today. The pro-EU Emmanuel Macron coming in first, ahead of anti-EU rival Marine Le Pen, in the first round of French presidential elections helped boost the euro in today’s trading. Specifically, the single [..]

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Forex Market Review (Asian Session) – Euro spikes and gold slips as markets see relief rally after first round of French elections

Posted on April 24, 2017 at 6:48 am GMT

The euro spiked to a five-month high against the dollar on the news that Emmanuel Macron passed through to the second round of the French elections with the most votes. The centrist candidate is viewed as market-friendly as he is pro-business and pledges to boost the French economy with a multi-billion-euro stimulus plan if he becomes president.  The latest vote count showed Macron winning 23.9% of the votes against 21.4% for far-right candidate Marine Le Pen, according to figures from the [..]

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Forex Market Review (European Session) – Euro slips ahead of French vote; sterling hit by disappointing UK retail sales data

Posted on April 21, 2017 at 2:51 pm GMT

Sterling tumbled after UK retail sales data significantly missed expectations on all counts. The euro slipped despite stronger PMIs as French elections loom. The safe haven yen was supported against a backdrop of event and geopolitical risk. Cable dipped below the key $1.2800 level in response to a disappointing UK retail sales report. Month-on-month retail sales fell 1.8% in March after a 1.7% increase in February. The headline figure came in at 1.7% year-on-year versus the 3.4% forecast. The quarterly [..]

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Forex Market Review (Asian Session) – Euro holds above $1.07; dollar supported by Mnuchin comments on tax reform

Posted on April 21, 2017 at 7:42 am GMT

Risk aversion dominated the markets, following news of the terrorist attack in Paris and risk ahead of the French elections, giving safe havens a boost. Investors were already in countdown mode to Sunday’s first round vote in France, which kept the euro subdued. A recent poll showed Macron at 24%, Le Pen at 21.5%, Fillon at 20% and Melenchon at 19.5%, making it a very tight race. Limited action is expected for the euro ahead of the vote although flash PMI [..]

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Forex Market Review (European Session) – Euro and sterling hold gains against dollar while yen underperforms

Posted on April 20, 2017 at 2:48 pm GMT

The euro was relatively firm on the day while the yen was one of the worst performing major currencies. The dollar was mixed but softer against the majors like the euro and sterling, which helped commodity prices higher. The dollar index, which gauges the US currency against six major counterparts, fell to a three-week low of 99.37. Data out of the Eurozone included German PPI which was flat in March, versus expectations of a 0.2% month-on-month gain. It rose 3.1% [..]

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Forex Market Review (Asian Session) – Kiwi rallies after New Zealand inflation rises to 5-year high

Posted on April 20, 2017 at 7:42 am GMT

The New Zealand dollar was one of the best performers after inflation beat forecasts. Elsewhere, most major currency pairs remained in recent ranges as geopolitical concerns and French election risks are keeping investors cautious. Inflation in New Zealand accelerated to 2.2% year-on-year versus 2.0% expected and was the highest in five years. On the quarter, CPI rose 1.0% versus 0.8% expected. Soon after the release of the data the kiwi surged against its US counterpart to $0.7043 and held gains [..]

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Forex Market Review (European Session) – Dollar lacks momentum on falling yields, doubts over Trump

Posted on April 19, 2017 at 2:47 pm GMT

Besides final Eurozone inflation data for the month of March and some data on US crude oil inventories, investors didn’t have much to digest in terms of economic data during today’s European session trading. Political developments were once again on the spotlight. The dollar index gained some ground today after three straight days of falls, but even at its highest it failed to break above the 100 level. The greenback lost part of its allure as the yields on US [..]

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Forex Market Review (Asian Session) – Sterling holds gains at six-month highs; aussie underperforms

Posted on April 19, 2017 at 7:39 am GMT

Sterling held on to gains made after surging to its highest level in more than six months on Tuesday in reaction to an announcement by UK Prime Minister Theresa May who surprised markets by calling a snap general election in June. Markets see a sure win for Theresa May and the Conservative party and expect that this would strengthen her position during the Brexit negotiations as well as stabilize domestic politics. The pound rallied to a high of $1.2904 by [..]

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