Geo-Political Risk to Drive the USD and the GBP, with no Stats to Speak of Today
It’s going to be a tough day for the markets, with no material stats on the economic calendar to digest through the European and U.S Sessions, leaving the major currencies susceptible to geo-political risk and positioning ahead of this week’s FED meetings in Jackson Hole, Wyoming, where ECB President Draghi is also scheduled to speak. … Continue reading Geo-Political Risk to Drive the USD and the GBP, with no Stats to Speak of Today
U.S. Dollar at Center of Volatile Trading Week
If you like volatility then the Forex market was the place to be last week. The price action featured trend and counter-trend moves. Wicked two-sided trades, break outs, break downs, and risk-on and risk-off scenarios. The center of it all was the U.S. Dollar. Despite the wild swings, the Greenback was able to finish slightly … Continue reading U.S. Dollar at Center of Volatile Trading Week
Is the Dollar Ready for a Tumble?
One does have to wonder whether the next 3 plus years are going to be anything like the last 8 months, with the U.S administration seemingly more capable of dictating the direction of the Dollar than the FED. Economic data out of the U.S this week hasn’t been too bad, with the weekly jobless claims … Continue reading Is the Dollar Ready for a Tumble?
UK Retail Sales, Eurozone Inflation and ECB Meeting Minutes to Drive the EUR and the GBP
Unsurprisingly, the FOMC meeting minutes released late in the U.S session on Wednesday failed to deliver on market expectations, with there being no timelines on when the FED will begin selling down the balance sheet, as the markets further priced out the chances of a 3rd and final rate hike of the year by year … Continue reading UK Retail Sales, Eurozone Inflation and ECB Meeting Minutes to Drive the EUR and the GBP
U.S. Dollar Soars to Nearly Three-Week High as Chance of Rate Hike Rises
U.S. Dollar Index futures soared to their highest level since July 25 on Tuesday after the release of better-than-expected U.S. economic data. The index was underpinned early in the session by the news that North Korean leader Kim Jong Un had delayed a decision on firing missiles toward the U.S. Pacific territory of Guam, but … Continue reading U.S. Dollar Soars to Nearly Three-Week High as Chance of Rate Hike Rises
RBA Minutes, German GDP, UK Inflation and U.S Retail Sales. It’s All Go
The Asian session continued to see Asian equities bounce back through the session, with macroeconomic data out of Japan continuing to impress, June industrial production rising by 2.2%, whilst the biggest focus was on this morning’s RBA meeting minutes, with the markets looking to get a sense of whether the stronger AUD would continue to … Continue reading RBA Minutes, German GDP, UK Inflation and U.S Retail Sales. It’s All Go
Risk Appetite Returns Along Side Appetite for the Dollar
Asian markets largely embraced risk appetite once more through the Asian session, supported by Friday’s positive end to the week in the U.S equity markets, with only the Nikkei struggling following Friday’s holiday as the Japan markets played catch up. Weaker than forecasted July industrial production and fixed asset investment numbers out of China will … Continue reading Risk Appetite Returns Along Side Appetite for the Dollar
Lower Treasury Yields, U.S. Stocks Drive Japanese Yen Higher
Flight-to-safety buying sent the Japanese Yen to its highest level against the U.S. Dollar since April 20. The catalysts were escalating concerns over a possible military conflict between the United States and North Korea and weaker-than-expected U.S. inflation data. For the week, the USD/JPY settled at 109.153, down 1.511 or -1.37%. A sharp decline in … Continue reading Lower Treasury Yields, U.S. Stocks Drive Japanese Yen Higher
Weak Consumer Inflation Raises Doubts Over Fed Rate Hike
The U.S. Dollar closed lower against a basket of currencies on Friday in reaction to data showing U.S. consumer inflation rose less than expected in July. The low inflation reading could encourage the U.S. Federal Reserve to pass on a third rate hike this year. According to the government, the U.S. Consumer Price Index inched … Continue reading Weak Consumer Inflation Raises Doubts Over Fed Rate Hike
It’s Inflation Day for the Dollar
The U.S Producer Price Index fell by 0.1% on Thursday weighing on the Dollar as the markets continue to grapple with the outlook on monetary policy, the weakness in wholesale price inflation weighing on the Dollar just as it began to find support amidst the rising tension between Trump and North Korea. Adding to the … Continue reading It’s Inflation Day for the Dollar
Trade and Production Figures to Define the Pound
It’s a big day for the Pound and this may seem more like a Mega Thursday when compared with last week’s Super Thursday, as the markets look ahead to this morning’s June manufacturing and industrial production figures, which are scheduled for release alongside June’s trade numbers. There’s been plenty of talk over the UK economy … Continue reading Trade and Production Figures to Define the Pound
U.S. Dollar Loses Ground to Lower-yielding, Safe-haven Currencies
The U.S. Dollar fell against a basket of currencies on Wednesday as increased tensions between the United States and North Korea sent investors into lower-yielding, lower-risk assets. Investors sought shelter in the Japanese Yen, a common safe haven during geopolitical turmoil. The USD/JPY settled at 110.053, down 0.276 or -0.25%. Traders also said Japan … Continue reading U.S. Dollar Loses Ground to Lower-yielding, Safe-haven Currencies
Will the Dollar Rise Alongside Rising Tensions with North Korea
With little else for the markets to consider on Tuesday, June’s JOLTs job openings needed to be something special for the Dollar and the numbers were certainly unexpected, with thinner volumes driving the Dollar, as a sense of relief spread across the markets on robust demand for labour, raising hopes of rising wage growth off … Continue reading Will the Dollar Rise Alongside Rising Tensions with North Korea
The Dollar Nightmare Continues
Any hopes of a rebound in the Dollar were quashed on Monday afternoon, with FOMC non-voting member Bullard holding is dovish outlook on monetary policy, stating that he is comfortable where rates are at the moment, whilst supportive of the FED beginning to sell down the balance sheet from next month. Speaking later in the … Continue reading The Dollar Nightmare Continues
The Dollar Bears Are Back After Taking a Break on Friday
It’s a pretty quiet day on the macroeconomic calendar for the day ahead, with stats out of Eurozone this morning having been limited to Germany’s June industrial production figures and July housing price figures out of the UK. A lack of data hasn’t deterred the markets from responding to Friday’s nonfarm payrolls, with the Dollar … Continue reading The Dollar Bears Are Back After Taking a Break on Friday
Higher Treasury Yields Lift Dollar Against Basket of Currencies
Volatility in the Forex markets returned on Friday after a somewhat quiet week. Throughout the week, the volatility was concentrated on a few currencies, but on Friday it was widely distributed in all the major currencies, especially the U.S. Dollar. The primary market moving event last week was Friday’s U.S. Non-Farm Payrolls report. According to … Continue reading Higher Treasury Yields Lift Dollar Against Basket of Currencies
Bank of England Makes Pound End Week Extremely Soft
While US nonfarm payrolls were arguably the most important economic release for the Forex market during the past trading week, the Bank of England policy meeting held special significance for the Great Britain pound. Traders were rather optimistic ahead of the BoE meeting, leading to a rally for the sterling. Yet the rally came to an abrupt end after the central bank demonstrated dovish stance and revised growth forecasts down. Friday’s nonfarm payrolls were not helping either, … Continue reading Bank of England Makes Pound End Week Extremely Soft
Can Nonfarm Payrolls Save the Dollar?
The markets will be thanking BoE Governor Carney and Chief Economist Haldane for the forward guidance on monetary policy just a few weeks ago, with both deciding to take the more cautious approach in policy and stand firm, whilst McCafferty and Saunders continued to vote in favour of a reversal to last year’s easing, their … Continue reading Can Nonfarm Payrolls Save the Dollar?
Czech Koruna Advance After First Interest Rate Hike in Almost a Decade
The Czech koruna advanced against the US dollar today after the central bank decided to hike its key two-week repo rate. The Czech National Bank raised its main interest rate by 20 basis points to 0.25% and the Lombard rate by 25 basis points to 0.50%, while keeping the discount rate unchanged at 0.05%. Such decision was expected by some analysts. It the first change in borrowing costs since November 2012 and the first domestic hike since February 2008. … Continue reading Czech Koruna Advance After First Interest Rate Hike in Almost a Decade
It’s Super Thursday! Which Way Will the Pound Go?
It’s Super Thursday and the Pound will undoubtedly see some volatility through the day as the markets position ahead of the BoE Monetary Policy Committee’s interest rate decision, release of the BoE inflation report and monetary policy meeting minutes and BoE Governor Carney’s press conference. There’s been plenty of speculation of what lies ahead for … Continue reading It’s Super Thursday! Which Way Will the Pound Go?