Daily Market Analysis

Forex Market Review (Asian Session) – Dollar stronger on hawkish Yellen but eyes on tax plans; kiwi weak ahead of RBNZ meeting

Posted on September 27, 2017 at 8:00 am GMT

Fed Chair Janet Yellen, held a hawkish stance on the Fed’s rate path on Tuesday, boosting the dollar to a fresh one-month high against a basket of major currencies. On Wednesday, dollar sentiment is expected to be positive as markets anticipate the Congress to welcome Republicans’ tax plans after Senate Republicans failed again to replace Obamacare. Meanwhile, the focus will be also on the policy meeting held by the Reserve Bank of New Zealand (RBNZ) later today. The dollar index stood tall at a fresh one-month [..]

Forex Market Review (European Session) – Dollar index hits one-month high ahead of Yellen’s speech; euro sinks to one-month low

Posted on September 26, 2017 at 3:16 pm GMT

The European forex markets on Tuesday continued digesting political uncertainties arising from the German elections, kicking the euro to a one-month low. The dollar, on the other hand, stood tall at a one-month high ahead of Fed Chair Janet Yellen’s speech later today despite US-North Korea war tensions becoming dangerous as fiscal policy came to the spotlight. The dollar extended its uptrend against a basket of major currencies despite escalating North Korean tensions as focus turned to fiscal policy. Sources familiar [..]

Forex Market Review (Asian Session) – Safe havens gain ground as Pyongyang threatens to shoot down US jets; oil hits fresh highs

Posted on September 26, 2017 at 8:08 am GMT

Geopolitical uncertainties became dangerous late on Monday giving a boost to safe havens during Tuesday’s Asian session. The North Korean Foreign Minister Ri Yong Ho used a stronger language against the US, saying that Trump’s recent comments were a declaration of war on the Korean peninsula and the regime has the right to shoot down US bombers even if they fly outside the regime’s airspace. A few hours later the White House spokeswoman Sarah Sanders denied that the US has declared war on North Korea, while the National Security Adviser H.R McMaster argued [..]

Forex Market Review (European Session) – Euro extends decline after German elections; oil jumps to fresh multi-month highs

Posted on September 25, 2017 at 3:12 pm GMT

The euro continued to be dogged by concerns about the outcome of the German elections, extending its losses in European trading, while a similarly disappointing election outcome in New Zealand caused the kiwi to be the day’s worst performing major currency. The US dollar was firmer as the yen came under pressure after the Japanese prime minister called a snap general election. Oil prices meanwhile rose to fresh highs after major producers said the market was rebalancing. The prospect of [..]

Forex Market Review (Asian Session) – Euro, kiwi setback as election winners seek coalition; gold down despite another round of threats

Posted on September 25, 2017 at 7:55 am GMT

The euro and the kiwi were trading lower on Monday after the election weekend for Germany and New Zealand ended with expected outcomes but insufficient votes to form a government. Meanwhile, geopolitical tensions continued to escalate between the US and North Korea as another round of threats took place during the weekend. However, the markets ignored the fresh warnings, with the safe-haven gold retreating near to one-month lows. On Sunday, exit polls in Germany favored Chancellor Angela Merkel for the fourth time with the [..]

Forex Market Review (European Session) – Dollar under pressure after Trump’s tweet on N. Korea; pound weaker despite May rejecting options of leaving EU earlier

Posted on September 22, 2017 at 3:54 pm GMT

The latest war of words between Trump and the North Korean leader Kim Jong Un kept markets nervous during the European session, with the dollar being unable to restore Wednesday’s gains when the FOMC statement signaled the start of the balance sheet reduction in October and more strongly put on the table an additional rate hike later in the year. However, the Brexit speech by the UK Prime Minister Theresa May was in the spotlight during the European session with the pound sinking during [..]

Forex Market Review (Asian Session) – Dollar tumbles on rising US – North Korea tensions; pound flat ahead of May’s Brexit speech

Posted on September 22, 2017 at 8:06 am GMT

The risk-off sentiment reemerged on Friday in Asia, as the North Korean leader Kim Jong Un delivered another threatening message to the US following Trump’s warning at his debut speech at the UN General Assembly on Monday. The dollar lost ground against a basket of major currencies, paring gains made after the Fed’s decision to start unwinding its balance sheet on Wednesday. Meanwhile, the pound remained steady ahead of the widely expected speech by the British Prime Minister on Brexit later today. Investors were in a risk-averse mode during the [..]

Forex Market Review (European Session) – Markets digest Fed message as dollar corrects; aussie drops on Chinese downgrade

Posted on September 21, 2017 at 2:47 pm GMT

The US dollar gave back some of its gains versus its major counterparts such as the euro, the yen and the British pound after the Fed signaled the previous day it was planning to raise interest rates one more time this year. The Fed also announced that in October it would start to slowly roll back some of the stimulus it injected in the form of Quantitative Easing; the first major central bank to do so since the financial crisis [..]

Forex Market Review (European Session) – Dollar stays weak on prospect of dovish Fed later

Posted on September 20, 2017 at 2:43 pm GMT

The US dollar remained weak ahead of the Federal Reserve’s announcement and the Fed Chair’s press conference later in the session. Traders seemed to be bracing for an on balance dovish message from the Fed, even though the market still expected a rate hike at the end of the year to be more likely than not. There was virtual unanimity that the Fed would not increase rates today but rather only announce the starting date for the gradual reduction of [..]

Forex Market Review (Asian Session) – Dollar eases ahead of FOMC decision; oil up after Iraq says to cut oil supply

Posted on September 20, 2017 at 7:56 am GMT

While geopolitical tensions escalated after the US President used stronger language against North Korea at his first speech in front of global leaders at the UN on Tuesday, the dollar showed relatively little reaction slipping near its two-year lows. Markets instead were more cautious about the FOMC decision to be announced later today, while they were also looking forward to the BOJ policy meeting scheduled for Thursday. Meanwhile, oil prices headed higher after OPEC member Iraq said it would take further action to limit its supply. The dollar index was [..]

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