Daily Market Analysis

Forex Market Review (European Session) – Euro falls while ECB President Draghi speaks; sterling rises on latest election poll

Posted on May 29, 2017 at 3:11 pm GMT

Markets were closed in the US and in the UK today leading to relatively low trading volumes in currencies. The euro fell while European Central Bank President Mario Draghi testified at the European parliament in Brussels today. His comments struck a cautious note ahead of the ECB’s policy meeting next week, as he mentioned that the Eurozone economy still needed substantial monetary stimulus, especially if inflation was to rise in a sustainable way to reach the 2% target. While acknowledging [..]

Forex Market Review (Asian Session) – Dollar boosted by Fed speaker and US GDP; pound rebounds after latest election poll

Posted on May 29, 2017 at 7:12 am GMT

The dollar was boosted after comments by Federal Reserve Bank of San Francisco President John Williams and on an upbeat US GDP. The pound rebounded after the latest UK election opinion poll showed the Conservatives in the lead. An ICM poll for British newspaper The Sun released over the weekend, showed Prime Minister Theresa May’s Conservatives with a 14-point lead over the Labour Party. The latest poll follows from one published last Friday, which showed a narrower lead of just 5 [..]

Forex Market Review (European Session) – Dollar rebounds after US GDP revised up; sterling falls another leg lower

Posted on May 26, 2017 at 2:39 pm GMT

The dollar rebounded after GDP revisions showed economic growth in the US slowed less sharply in the first quarter than initially thought. Sterling extended losses versus the greenback after the US data. Oil stabilized following the post-OPEC tumble. The dollar had been sliding in European trading to sub-111 yen levels but rebounded after the release of US GDP revisions and durable goods data. The rally stalled at 111.33 yen after the final reading of the University of Michigan consumer sentiment [..]

Forex Market Review (Asian Session) – Oil slides after OPEC fails to do more; sterling drops on polls

Posted on May 26, 2017 at 7:09 am GMT

Sterling was one of the worst performing major currencies against the US dollar after tumbling on a recent poll showing UK Prime Minister Theresa May’s lead was falling. Oil slid on disappointment following the OPEC deal. Investors were hoping for deeper cuts at the OPEC gathering in Vienna yesterday that also included some non-OPEC producers. A deal was reached to extend a current output cut agreement by another nine months, taking it to March 2018. This was already priced in [..]

Forex Market Review (European Session) – Dollar still weighed by Fed minutes; Oil falls after OPEC extends cuts

Posted on May 25, 2017 at 2:17 pm GMT

The US dollar remained weighed by yesterday’s FOMC minutes where Fed policymakers appeared a bit more concerned about the soft patch affecting the US economy. Crude oil was also in focus as OPEC and some non-OPEC countries met in Vienna to discuss whether to extend the output cut deal, which is due to expire at the end of June. The greenback bounced back in Thursday’s European session, rising as high as 111.94 yen from yesterday’s low of 111.47 yen, before [..]

Forex Market Review (Asian Session) – Dollar lags after Fed minutes; loonie hits new month high; oil gains ahead of OPEC

Posted on May 25, 2017 at 7:26 am GMT

The US dollar was heavy after the FOMC minutes, while the Canadian dollar outperformed across the board on an upbeat Bank of Canada. Oil prices extended gains ahead of the OPEC meeting in Vienna today. The minutes from the Fed’s May policy meeting showed some caution, despite most FOMC members indicating that another interest rate increase would be appropriate soon. The probability of a rate hike at the June FOMC meeting remains quite high – above 80% – but the [..]

Forex Market Review (European Session) – Loonie gains after BOC; greenback sidelined ahead of FOMC minutes

Posted on May 24, 2017 at 3:18 pm GMT

The Canadian dollar was one of the best performing major currencies today after it gained on an upbeat Bank of Canada. The BOC held its benchmark interest rate at 0.5% as expected but its statement was more positive overall. It said that recent domestic economic data have been encouraging and inflation was broadly in line with expectations. After trading mostly flat for most of the day, the USD / CAD tumbled on the BOC announcement, dropping below the key $1.3500 [..]

Forex Market Review (Asian Session) – Aussie weakens after China downgrade; oil rises ahead of OPEC

Posted on May 24, 2017 at 7:49 am GMT

The aussie reacted negatively to Moody’s downgrade of China’s rating to A1 from Aa3, amid concerns over rising debt and slowing economic growth. China is a major trading partner for Australia and so the news had the most impact on the currency which fell over 0.5% against the greenback to reach $0.7441 during the Asian session, reversing a three-day advance. Disappointing Australian construction data also weighed on the aussie. The US dollar bounced back and pulled away from recent lows of more [..]

Forex Market Review (European Session) – Pound hits 2-month low versus euro amid strong Eurozone data and Manchester blast; loonie at 1-month high

Posted on May 23, 2017 at 2:54 pm GMT

The euro held near six-month highs against the dollar after strong Eurozone PMI data. Sterling remained under pressure due to the events in Manchester and following disappointing data related to the UK retail sector. The US dollar was flat against a basket of major currencies. The loonie hit a one-month high. The euro gained on the back of strong Eurozone and German PMI data, providing encouraging news for the European Central Bank which is expected to start unwinding its unprecedented [..]

Forex Market Review (Asian Session) – Sterling briefly impacted by Manchester blast; gold benefits from safe haven flows

Posted on May 23, 2017 at 7:37 am GMT

Risk appetite was dampened after news of the bomb blast in Manchester that killed more than twenty people late on Monday night. Sterling weakened immediately after the reports, while safe haven assets like the yen and gold strengthened. An uncertain political climate in the US weighed on the dollar. The pound dropped against the yen and the Australian dollar during Asian trading. It was impacted less against the greenback and the euro. Pound / yen fell half a percent from [..]

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