Daily Market Analysis

Forex Market Review (European Session) – Pound soars to 1-year high after inflation beat; dollar also up, euro under pressure

Posted on September 12, 2017 at 3:01 pm GMT

The British pound surged to a one-year high in European trading on Tuesday as traders bet on a more hawkish Bank of England following stronger-than-expected UK inflation data. The US dollar extended yesterday’s impressive gains against the yen but the euro struggled. The New Zealand dollar was another major gainer, while gold reversed its earlier losses following fresh threats from North Korea. The main data in today’s European session was the August inflation release out of the UK. Headline inflation [..]

Forex Market Review (Asian Session) – Dollar builds on gains as risk sentiment rises; pound vs euro hits 1-month high

Posted on September 12, 2017 at 7:57 am GMT

The dollar maintained its strength against its rivals during the Asian trading hours as experts downgraded the impact of Hurricane Irma, while the UN Security Council approved a lighter package of sanctions on North Korea. Meanwhile, the British government won the vote on the EU withdrawal bill, lifting the pound to a one-month high versus the euro. With the economic calendar lacking significant releases, the greenback continued its uptrend in Asia as, for the moment, investors ruled out extreme weather in the US and fresh tensions in the Korean peninsula. [..]

Forex Market Review (European Session) – Euro pulls back as ECB’s Coeure questions inflation path; pound holds onto gains ahead of a busy week

Posted on September 11, 2017 at 2:46 pm GMT

While investors were looking for riskier purchases after North Korea confounded rumors of an intercontinental ballistic missile test on Saturday, the euro retreated following the dovish remarks made by ECB member, Benoit Coeure, in Frankfurt. Meanwhile, the pound drifted higher during the European trading ahead of a busy data week and before the BOE policy meeting on Thursday. The dollar continued gaining against its rivals in Europe as geopolitical risks eased on Monday. However, investors were focused on the outcome [..]

Forex Market Review (Asian Session) – Dollar gets back on feet as risk-off sentiment eases; oil jumps on potential extension of supply cut

Posted on September 11, 2017 at 7:48 am GMT

On Monday, investors had a bit more appetite for risk in Asia, giving some support to the dollar, as North Korea celebrated the anniversary of its founding without any additional missile tests. In energy markets, oil prices showed some recovery after ministers from Saudi Arabia, Venezuela and Kazakhstan discussed the potential of extending the period of supply cuts ahead of the OPEC meeting in November. The US was in a state of emergency during the weekend as thunderstorm Irma passed [..]

Forex Market Review (European Session) – Sterling breaks 1.32 ahead of BOE meeting; yen extends gains as North Korean risks linger

Posted on September 8, 2017 at 3:14 pm GMT

The dollar continued to trade weak during the European session with most of its peers hovering near fresh highs they reached in the Asian session. The pound and the yen extended their earlier gains, with the former hitting above the 1.32 key level against the greenback, while the latter reached the price of 107 per dollar for the first time since November 2016. With Hurricane Irma heading towards Florida, after it devastated the Caribbean islands and while other two hurricanes have been observed moving in the [..]

Forex Market Review (Asian Session) – Dollar falls to 32-month low; rivals hit fresh highs

Posted on September 8, 2017 at 7:45 am GMT

It was another difficult session for the US dollar as numerous factors including political issues, disappointing economic numbers, and dangerous natural phenomena weighed heavily on the currency driving it to a 32-month low. Consequently, the dollar’s weakness boosted other majors and helped them reach new highs. The dollar fell to low levels not seen since the beginning of 2015 during the Asian trading hours, as the country is preparing to welcome another powerful Hurricane named Irma in Florida, hopes for another rate hike soon are fading [..]

Forex Market Review (European Session) – Euro shines despite Draghi’s warning about FX volatility; dollar tanks

Posted on September 7, 2017 at 2:51 pm GMT

The euro rose higher on optimism that the ECB would soon taper its QE program while the dollar dropped on weak economic data and as another major hurricane is set to hit the United States. In the day’s most anticipated event, the European Central Bank refrained from changing policy although some analysts were expecting an announcement regarding the tapering of its asset purchase (QE) program. Despite the dovish outcome, euro/dollar rose sharply, rising north of 1.20 to 1.2058, just shy [..]

Forex Market Review (Asian Session) – Dollar fails to rise on higher US debt ceiling; focus on ECB

Posted on September 7, 2017 at 7:44 am GMT

After a surprise rate hike from the Bank of Canada, US Congressional leaders and the president decided unexpectedly on late Wednesday to raise the government’s debt limit. However, the dollar failed to strengthen, as geopolitical risks continued to weigh on the markets, while the Fed’s Vice Chairman surprised markets by submitting his resignation. The euro was also in focus, as investors are widely expecting the European Central Bank to kick off its policy meeting later today. On Wednesday, the US [..]

Forex Market Review (European Session) – Loonie shines as BOC raises rates; oil prices hit fresh highs ahead of API

Posted on September 6, 2017 at 3:18 pm GMT

Although the North Korean story is still in progress, spreading fears to the international community and forcing investors to give up high-yield assets and buy less risky ones, the focus during the European trading hours turned back to the economic calendar. Trade and non-manufacturing PMI data were out of the US, while Canada released trade figures prior the BOC’s surprising decision to raise rates. The loonie climbed to a fresh 2-year high versus the greenback, while oil peaked at new [..]

Forex Market Review (Asian Session) – Dollar tumbles as North Korea promises a “gift of packages”; aussie retreats on disappointing GDP growth

Posted on September 6, 2017 at 7:36 am GMT

On Wednesday, markets continued being in a risk-averse mood as a North Korean diplomat warned the day before that more is coming from his country. However, in the US the focus turned to domestic policies, as Fed policymakers are preparing for their next meeting in two weeks’ time. With geopolitical risks in the background, the dollar weakened further following the dovish comments made by the Minneapolis Fed President Neel Kashkari. Meanwhile, the aussie lost steam after the GDP growth data appeared lower than expected. Late on Tuesday, comments by a [..]

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