Daily Market Analysis

Forex Market Review (European Session) – Pound resumes slide; dollar weighed by US tech sell-off

Posted on June 12, 2017 at 3:19 pm GMT

The pound was once again the worst performing major currency on Monday as the May government’s stance on Brexit added renewed pressure on the British currency. The dollar did not fare much better as weaker US equities weighed on the greenback ahead of this week’s FOMC meeting, while the yen benefited from the increased risk aversion to advance higher against all major pairs. Having stabilized late on Friday and in Asian trading today, the pound resumed its downtrend at the [..]

Forex Market Review (Asian Session) – Sterling steady after UK election tumble; euro up after French parliamentary elections

Posted on June 12, 2017 at 7:20 am GMT

Sterling has stabilized after Friday’s big tumble against the dollar following the shock UK election result that brought about political uncertainty. Prime Minister Theresa May was left with a minority government and she reshuffled her cabinet over the weekend. Focus turns to the Brexit negotiations that begin in about a week. Meanwhile, the Bank of England holds a policy meeting on Thursday. This would be the next risk event for the pound, which continued to trade below the key $1.2800 [..]

Forex Market Review (European Session) – British drama hurts sterling; dollar advances eyeing Fed meeting

Posted on June 9, 2017 at 3:01 pm GMT

Political developments were dominating investors’ attention today with the outcome of British national elections and the effect on sterling being number one on the watch-list. Less than two weeks’ time before Brexit negotiations get underway, UK Prime Minister Theresa May’s Conservative party lost its majority in the House of Commons. May’s call for snap elections was in the first place intended to give her a stronger hand in negotiating the nation’s exit from the EU and the outcome turned out [..]

Forex Market Review (Asian Session) – Sterling plunges on political uncertainty after inconclusive UK election result; dollar steady after Comey testimony

Posted on June 9, 2017 at 7:44 am GMT

Sterling plunged on political uncertainty after an inconclusive result in the UK general elections that took place on Thursday, with no single party having a clear claim to power. The dollar moved higher as it was unfazed by former FBI Director James Comey’s testimony yesterday. The British pound lost over 2% against the greenback, touching near a two-month low of $1.2634. The euro surged against sterling to a high of 88.58 pence. Exit polls showed the likelihood of a hung [..]

Forex Market Review (European Session) – Euro falls after not-so hawkish ECB; sterling off 2-week high ahead of UK election outcome

Posted on June 8, 2017 at 2:32 pm GMT

The much-awaited risk events taking place over the course of the day began with the European Central Bank policy meeting followed by the press conference by President Mario Draghi. The UK general elections are in progress with exit polls expected at 21:00 GMT. The euro briefly dipped below $1.1200 after the ECB policy decision was announced as the market was looking for a more hawkish signal. The ECB left rates unchanged as was widely expected but dropped its easing bias [..]

Forex Market Review (Asian Session) – Sterling hits 2-week high ahead of UK election; euro steady with focus on ECB; dollar soft into Comey hearing

Posted on June 8, 2017 at 7:24 am GMT

Currency markets were showing signs of caution ahead of key risk events later in the day. Risk aversion supported gold and the yen. The euro and sterling held steady while the dollar index wallowed near seven-month lows. Investors are bracing for the European Central Bank’s policy meeting and for the UK general election. All eyes will also be on former FBI Director James Comey’s congressional testimony. In terms of economic data, the downside miss on Australia’s April trade surplus pushed [..]

Forex Market Review (European Session) – Dollar flat ahead of Triple Threat Thursday; inflation concerns hurt the euro

Posted on June 7, 2017 at 2:59 pm GMT

Today’s European session was light in terms of economic data with notable market reaction only being evidenced after the release of UK house price data. Market participants are now turning their attention to tomorrow’s main risk events, which have the capacity to generate significant volatility in the markets. Tomorrow has been dubbed as “Triple Threat Thursday” as three major risk events will dominate investors’ attention. Namely, Brits will be called in to vote in a national election, the European Central [..]

Forex Market Review (Asian Session) – Aussie jumps on GDP; gold at 1-month high ahead of risk events

Posted on June 7, 2017 at 7:23 am GMT

The Australian dollar rallied on upbeat GDP data while the greenback steadied after sharp declines this week. Upcoming key risk events tomorrow dampened risk appetite in the markets as investors were cautious ahead of the UK elections, the European Central Bank meeting, and the testimony to a Senate committee by former FBI Director James Comey. This helped support gold near seven-month highs. The aussie was one of the best performing major currencies against the US dollar in the Asian session [..]

Forex Market Review (European Session) – Political uncertainty drives gold to 7-week high; Dollar extends losses

Posted on June 6, 2017 at 3:00 pm GMT

Uncertainty ahead of the UK general election and Comey’s testimony in the US Congress on Thursday drove gold to a 7-week high in European trading today, while the US dollar made fresh lows. The greenback has been under pressure since Friday when a disappointing non-farm payrolls report dampened expectations of a third rate hike by the Fed this year, although markets are still pricing a rate increase at next week’s FOMC meeting. However, worries of an escalating political fallout in [..]

Forex Market Review (Asian Session) – Dollar extends decline; aussie rallies after RBA; oil under pressure

Posted on June 6, 2017 at 7:16 am GMT

The dollar was broadly weaker and the yen gained on safe haven demand. The aussie rallied after the RBA meeting. Oil remained under pressure. The Reserve Bank of Australia announced its decision to hold its benchmark interest rate steady at 1.5% and said that its unchanged policy was consistent with sustainable growth and hitting its inflation target. The markets took comfort from the RBA statement and this helped the aussie erase earlier losses to reach a session high of $0.7495. [..]

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