Daily Market Analysis

Forex Market Review (European Session) – Dollar boosted by hawkish comments from NY Fed President William Dudley; Brexit talks commence

Posted on June 19, 2017 at 3:04 pm GMT

The US dollar was one of the best performing major currencies after receiving a boost from some hawkish comments from New York Federal Reserve President William Dudley. Brexit negotiations are underway in Brussels, which has potential to create a risk event for the pound and the euro. A quiet economic calendar today resulted in relatively little movement in the forex markets. However, investors will remain focused on the Fed speakers this week in the aftermath of last week’s FOMC meeting. [..]

Forex Market Review (Asian Session) – Euro steady as Macron set to win legislative elections; sterling in focus as Brexit talks begin

Posted on June 19, 2017 at 7:19 am GMT

The euro was supported by news that French President Emmanuel Macron won a majority in Sunday’s legislative elections. Sterling was steady ahead of the start of Brexit talks in Brussels today. In terms of economic data, Japan had a surprise trade deficit in May. The overall trade balance was -203.4 billion yen last month, missing the 76.0 billion yen surplus expected and was below the prior 481.7 billion yen surplus. The yen weakened after the Japanese data. This helped the [..]

Forex Market Review (European Session) – Dollar falls on weaker-than-expected housing starts, flat on the week

Posted on June 16, 2017 at 2:57 pm GMT

Comparing to yesterday’s European session, today’s was a rather quiet one. Remarks by the Bank of Japan Governor spurred the placing of certain positions by forex market participants early in the session. Data pertaining to Eurozone inflation, as well as releases on homebuilding activity and the University of Michigan’s survey on consumer expectations out of the US kept traders busy throughout the rest of the session. As the European trading day was beginning, the Bank of Japan Governor Haruhiko Kuroda [..]

Forex Market Review (Asian Session) – Yen softer after BoJ makes no change to monetary policy or economic outlook; dollar holds onto post-FOMC gains

Posted on June 16, 2017 at 7:28 am GMT

The yen weakened after the Bank of Japan (BoJ) left monetary policy unchanged today while the US dollar remained firm after the Federal Reserve raised interest rates on Wednesday. The BoJ announced its decision to maintain its current monetary policy without making any tweaks, as was widely expected, since inflation in Japan is still very subdued. The main interest rate was kept at -0.1% and there was no change to its asset purchase program or yield curve control. Its economic [..]

Forex Market Review (European Session) – Sterling gains on growing rate hike expectations; stronger dollar following Fed

Posted on June 15, 2017 at 2:45 pm GMT

The Bank of England coming closer to an interest rate increase shocked currency market participants today, who reacted by placing long sterling positions and thus boosting the currency. The dollar stood stronger today following a more hawkish than expected Fed. The Bank of England left rates unchanged at the record-low 0.25% upon completion of today’s meeting. However, three of the eight Monetary Policy Committee (MPC) members on the Bank’s board decided to support a rate hike, taking markets by surprise [..]

Forex Market Review (Asian Session) – Aussie gains on upbeat jobs report; kiwi drops after GDP; greenback steady post-Fed

Posted on June 15, 2017 at 7:39 am GMT

The US dollar mostly held onto gains made after the Federal Reserve was not as dovish as some had expected and the aussie was one of the best performing major currencies after strong jobs data. The kiwi slid after soft GDP data. The Fed announced on Wednesday it raised interest rates for the second time this year, taking the target range for the Fed funds rate to between 1.00-1.25%, as was widely expected. The US central bank cited continued US [..]

Forex Market Review (European Session) – Euro hits 7-month high against dollar after weak US CPI and retail sales ahead of FOMC; sterling reverses post-UK jobs data losses

Posted on June 14, 2017 at 2:57 pm GMT

The dollar fell after the release of a weak set of US data that would be disappointing for the Federal Reserve, which is expected to deliver a 25-basis point rate hike later today. The broadly weaker greenback helped sterling erase losses made from weak UK wage data. Both US CPI and retail sales numbers for May came in short of expectations, which resulted in the dollar index falling to a seven-month low of 96.32 after having risen to as high [..]

Forex Market Review (Asian Session) – Dollar slightly down ahead of Fed meeting; Kiwi at 3½-month high

Posted on June 14, 2017 at 7:50 am GMT

The dollar was slightly down as the Asian trading session was coming to a halt. The New Zealand dollar recovered after initially dropping as the country’s current account deficit as a proportion of GDP widened to its most in the first quarter of the year. Other data during the Asian session pertained to China. Looking at the dollar index, a broad measure of the US currency’s strength, it was down 0.1% and below the 97 level with the close of [..]

Forex Market Review (European Session) – Loonie extends gains after Poloz echoes Wilkins’ hawkish comments; pound gains on above expectations UK CPI

Posted on June 13, 2017 at 2:41 pm GMT

The Canadian dollar made strong gains after two Bank of Canada officials’ hawkish comments suggested a rate rise was nearer. Sterling was higher on forecast-beating UK inflation data. The dollar index was lower as the FOMC begins a two-day policy meeting. The main data out of the European session was the UK CPI report which helped the pound recover some losses made following Thursday’s post-UK elections tumble. However, sterling’s gains may be limited due to political risks as Prime Minister [..]

Forex Market Review (Asian Session) – Canadian dollar outperforms on rate hike probability; dollar steady ahead of Fed

Posted on June 13, 2017 at 7:39 am GMT

The Canadian dollar was one of the top performing major currencies after gaining on hawkish comments from a Bank of Canada official. The pound remained soft while the dollar index was little changed before Wednesday’s Federal Reserve policy decision. Bank of Canada Senior Deputy Governor Carolyn Wilkins’ comments yesterday raised the probability of a rate hike by year-end. Wilkins said the central bank would assess if it needs to keep interest rates at near-record lows as the Canadian economy grows. [..]

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