Daily Market Analysis

Forex Market Review (Asian Session) – Dollar weakens on concerns over dovish new Fed chair

Posted on October 4, 2017 at 7:47 am GMT

On Wednesday, economic market drivers were limited as the economic calendar was lacking important data. However, a final list of subsequent Fed candidates and speculations that Trump might nominate a less hawkish candidate pressured the dollar lower during the Asian session, giving a push to other major currencies. However, growing expectations of a third-rate hike in December kept the dollar index above the 93 key-level. During the Asian session, the dollar index, which gauges the dollar’s strength against its major peers, [..]

Forex Market Review (European Session) – Dollar retreats as investors take profits; euro rebounds

Posted on October 3, 2017 at 3:05 pm GMT

The dollar pared earlier gains during the European trading hours as investors were engaging in profit-taking, while the euro managed to rebound despite political uncertainty remaining in the background. The dollar index retreated from the 1 ½-month high of 93.92, falling to 93.45 before the session-end as investors were locking in gains ahead of the nonfarm payrolls report to be released on Friday. Investors though seem to remain confident on the US economic environment and Trump’s tax policy which aims to deliver large tax cuts to businesses. The pound [..]

Forex Market Review (Asian Session) – Dollar bulls in charge on improved US economic outlook; aussie down after RBA policy meeting

Posted on October 3, 2017 at 7:36 am GMT

On Tuesday, rising economic prospects in the US kicked the dollar higher to a 1 ½-month high against its major rivals during Asian trading, while a steady monetary policy and an unchanged economic outlook as indicated overnight by RBA policymakers sent the aussie down to a two-month low. The spot dollar index stretched its uptrend during the Asian session, reaching a fresh 1 ½-month high of 93.92 as confidence in the US economic environment was enhanced after the release of upbeat manufacturing PMI readings on Monday and the Fed retained its [..]

Forex Market Review (European Session) – Dollar strengthens after manufacturing PMI beat; pound hits three-week low as manufacturing industry slows

Posted on October 2, 2017 at 3:23 pm GMT

The dollar continued its rally during the European session and managed to peak at a two-week high against its major peers following upbeat manufacturing PMI releases, although a music festival in Las Vegas turned into the deadliest mass shooting in US history. However, gains from positive data were short-lived following dovish remarks by the Minneapolis Fed President Neel Kashkari. The UK manufacturing PMI numbers failed to provide support to the pound, which was one of the worst performing currencies relative to the dollar during the day, hitting [..]

Forex Market Review (Asian Session) – Euro dips into losses after violent Catalan independence vote; dollar gains

Posted on October 2, 2017 at 8:04 am GMT

With markets in China, South Korea, Hong Kong and India being closed for public holidays, the dollar managed to recover from earlier losses against its peers in Asia – helped by higher US Treasury yields – while the euro recorded a downtrend in the wake of a political crisis in Spain. The dollar posted gains versus a basket of major currencies during the Asian session on the back of higher US Treasury yields, with the dollar index rising by 0.40% on the day to 93.26. [..]

Forex Market Review (European Session) – Dollar reverses losses after Chicago PMI beat; pound slips as GDP growth disappoints

Posted on September 29, 2017 at 3:37 pm GMT

In a relatively busy data session, investors turned their attention back to the economic calendar, while concerns over Trump’s tax proposals continued to weigh on the markets. Disappointing US inflation readings had a moderate impact on the dollar as markets were optimistic that the Fed would deliver another rate hike in December after Fed Chair, Janet Yellen, supported on Tuesday a gradual rate hike despite the weakness in inflation. The pound was the worst performer following weaker GDP growth readings. [..]

Forex Market Review (Asian Session) – Dollar steady as uncertainties on tax reforms weigh; focus on inflation

Posted on September 29, 2017 at 8:09 am GMT

On Friday, currencies in Asia were in a quiet trade, with the dollar moving sideways near yesterday’s lows as positive sentiment on Trump’s tax proposals was fading and investors were less certain on whether those would pass in Congress. However, the focus during the day will be on the US inflation readings which might affect the Fed’s views on future monetary policy if they come in as a surprise. Although the US tax cuts proposed by the Trump administration raised confidence initially on the country’s fiscal policy, investors were less [..]

Forex Market Review (European Session) – Dollar retreats despite US economy performing better than expected; pound reverses losses after Barnier’s speech

Posted on September 28, 2017 at 3:02 pm GMT

During European trading, markets pushed the dollar lower as concerns grew over Trump’s tax proposals following an initial positive response. The dollar’s weakness gave a breather to other majors, with the euro and the pound being the best performers, while the latter gained additional support following encouraging comments made by the EU Brexit negotiator Michel Barnier. The dollar reversed gains made earlier against a basket of major currencies despite better than expected final GDP growth figures as investors were assessing [..]

Forex Market Review (Asian Session) – Dollar surges on Trump’s tax proposals; kiwi down after RBNZ releases monetary statement

Posted on September 28, 2017 at 8:06 am GMT

In a data-quiet session, the dollar managed to extend yesterday’s gains in Asia after the US President, Donald Trump, revealed his plans on tax reforms a day before. Meanwhile, markets were scanning the RBNZ statement released after the central bank decided to hold rates steady, with the kiwi dipping into losses after the new RBNZ Governor signaled that a weaker currency was needed. Trump unveiled late on Wednesday in Indianapolis the tax plan outline prepared by White House members and his Republican counterparts that is dubbed as the biggest US tax reform in three decades. The plan [..]

Forex Market Review (European Session) – Dollar rallies on hopes of tax reforms; eyes on RBNZ

Posted on September 27, 2017 at 3:13 pm GMT

Hawkish remarks by Fed Chair Yellen on Tuesday continued supporting the dollar against its major rivals during European trading as markets were more confident now that the Fed would deliver another rate hike in December. Investors were also cautious to hear whether the US tax overhaul plan announced later today would be Trump’s first major legislative achievement since his election, a day after his proposals to repeal Obamacare failed to pass yet again. The dollar index breached again the 93 key level during the European session, last trading at [..]

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