Daily Market Analysis

Forex Market Review (European Session) – Dollar pulls back as Trump opposes Senate healthcare deal; pound down as real wages disappoint

Posted on October 18, 2017 at 3:34 pm GMT

While China was in the spotlight during the day, with the Chinese President Xi Jinping opening the country’s biggest political event, the Communist Party Congress, in the US, President Trump showed opposition to the bipartisan healthcare deal, driving the dollar lower. The pound also weakened after employment data showed that UK real wages remain negative. The dollar index stalled its uptick driven mainly by speculations that Trump will replace the Fed chair with a hawkish candidate in February, retreating to [..]

Forex Market Review (Asian Session) – Eyes on Chinese communist party conference; loonie, Mexican peso jump as NAFTA talks extend

Posted on October 18, 2017 at 7:54 am GMT

Markets turned their focus on China on Wednesday, as China’s President Xi Jinping welcomed the biggest political event in the country, the Communist Party Congress, which plays a key role in the global economy. Meanwhile, the announcement of NAFTA talks extending to next year gave room for improvement to the Canadian dollar and to the Mexican peso. The Chinese President XI Jinping opened the twice-in-a-decade and closed-door Communist Party Congress in Beijing on Wednesday, with investors expecting the leaders of the world’s second-largest economy to announce any policy [..]

Forex Market Review (European Session) – Pound tumbles on dovish BoE comments; Fed chair talk drives dollar higher

Posted on October 17, 2017 at 2:37 pm GMT

Sterling took a tumble on Tuesday after Bank of England officials appeared more cautious than anticipated in supporting policy tightening even as UK inflation rose to a 5½-year high in September. The US dollar enjoyed a second day of solid gains as investors speculated that President Trump was considering appointing an inflation hawk as the next head of the US Federal Reserve. The euro meanwhile remained subdued as renewed political risks continued to weigh on the currency. It was a [..]

Forex Market Review (Asian Session) – Dollar rises as hawkish Fed candidate in favor; aussie extends losses after RBA minutes

Posted on October 17, 2017 at 7:43 am GMT

On Tuesday, the dollar drifted higher in Asia on speculations that a hawkish Fed candidate impressed the US President. On the other hand, the Australian dollar dipped into losses after the RBA meeting minutes reiterated concerns on overloaded household debt. Markets were surprised to hear on late Monday that the Stanford Economist, John Taylor, who was in a lower position on Trump’s shortlist of Fed chief candidates made an impression to Trump after an hour-long interview last week in the White House. Taylor is [..]

Forex Market Review (European Session) – Pound steady ahead of May’s Brussels meeting; euro posts moderate losses after Puigdemont misses deadline

Posted on October 16, 2017 at 3:22 pm GMT

With Fed chair Janet Yellen being confident that inflation measures will move towards the Fed’s 2% target in the upcoming months and business conditions improving the most in three years in October according to a survey conducted by the New York Fed, the dollar index managed to gain 0.12% on the day, climbing to a 5-day high of 93.36. Dollar/yen stood flat around 111.81. Meanwhile, in the fiscal policy front, a tax analysis released by the Trump administration on Monday [..]

Forex Market Review (Asian Session) – Euro slips as Austria shifts to the right; dollar edges up after Yellen bets on higher inflation

Posted on October 16, 2017 at 7:24 am GMT

The euro was on track to post a third consecutive red candle in Asia after Austrian national elections during the weekend heightened political risks in Europe, while markets are eagerly anticipating what the Catalan leader will say today before his deadline. On the other hand, the dollar managed to edge up against a basket of major currencies after the Fed chair shared her hawkish prospects for inflation. European far-right parties seem to gain support in Europe again despite defeats in France and [..]

Forex Market Review (European Session) – Dollar takes a breath as consumer prices disappoint; aussie, kiwi gain the most

Posted on October 13, 2017 at 3:12 pm GMT

While market watchers expected today’s US inflation report to give a clearer picture of the inflation path amid concerns whether subdued inflation is temporary or persistent, uncertainties over the direction of inflation increased after US consumer prices disappointed analysts, reducing the odds for a third rate hike before the end of the year. The widely-expected data on US consumer prices fell short of expectations in September, with the headline CPI index growing at 0.5% m/m, while analysts anticipated the figure to rise by [..]

Forex Market Review (Asian Session) – Dollar pulls back ahead of inflation data; pound rallies as EU looks to offer UK 2-year single market transition

Posted on October 13, 2017 at 8:15 am GMT

Concerns on the inflation path and questions on the future of tax plans continued to weigh on the dollar on Friday, while the pound drifted higher on reports that the UK may get a 2-year transitional period before it exits the EU. Although yesterday’s encouraging data on US producer prices and initial jobless claims helped the dollar to gain some ground against its major counterparts, markets remained cautious on the timing of another interest rate hike in 2017 after the Fed’s September meeting [..]

Forex Market Review (European Session) – Pound drifts lower after Barnier says Brexit talks are in “deadlock”; dollar recovers

Posted on October 12, 2017 at 3:16 pm GMT

The pound could not sustain its rally started during the Asian session on Thursday after discouraging comments on Brexit’s progress by the EU chief negotiator pushed the currency down, making it the worst performer among its major peers. The pound’s weakness, as well as US data on PPI and initial jobless claims, gave a lift to the dollar. The fifth round of Brexit talks, which are to be temporarily suspended when the two-day EU summit starts on October 19, was not constructive enough for the negotiations to move to [..]

Forex Market Review (Asian Session) – Dollar faces headwinds after FOMC minutes; euro rises as Rajoy sets deadline for Puigdemont

Posted on October 12, 2017 at 8:08 am GMT

The dollar was mostly in the red against its major counterparts during the Asian session after the FOMC meeting minutes released on Wednesday indicated that Fed policymakers had doubts on the inflation path. In contrast, the euro was on track to post gains for the fifth straight day as Catalonia’s questioned status of independence is likely to clear out next week. On late Wednesday, the minutes of the Fed’s September meeting sounded dovish to investors’ ears as the statement showed that policymakers are concerned that factors weighing on inflation [..]

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