Daily Market Analysis

Forex Market Review (European Session) – Euro pulls back from 6-month highs; Sterling holds within sight of $1.30

Posted on May 8, 2017 at 2:55 pm GMT

The euro’s relief rally from the French presidential result faded in European trading on Monday as profit taking set in, while the safe-haven yen recovered from its earlier weakness. The US dollar also gave up its earlier gains versus the yen but was firmer when measured against a basket of currencies. The single currency hit a 6-month high of 1.1022 dollars at the Asian open but had retreated to 1.0940 by late European session. A win for the centrist candidate [..]

Forex Market Review (Asian Session) – Euro jumps on French elections results, hits one-year high versus yen

Posted on May 8, 2017 at 7:55 am GMT

The results of the French presidential elections provided a boost for risk assets as the Emmanuel Macron victory provided more certainty for the markets, versus a Marine Le Pen win. The euro strengthened against most major counterparts and hit a six-month high against the US dollar, as Macron’s margin of victory was far greater than expected. The euro jumped in a knee-jerk reaction when markets opened today and rose above the $1.1000 level for first time since November, although gains [..]

Forex Market Review (European Session) – US job growth recovers; dollar fails to gain

Posted on May 5, 2017 at 3:14 pm GMT

The all-important non-farm payrolls number out of the US was released during today’s European session trading hours. The number showed a rebound from March’s underwhelming figure but failed to lift the dollar. Other important news pertained to Canada’s jobs report, which was also released today. The dollar index, measuring the greenback against the currencies of six major US trading partners, was more or less flat in late European session trading after falling to a near six-month low of 98.68 earlier [..]

Forex Market Review (Asian Session) – Oil crashes on oversupply concerns; aussie pressured by slipping iron ore prices

Posted on May 5, 2017 at 7:40 am GMT

Oil prices tumbled on concerns of a supply glut, which saw WTI crude slipping below $45 a barrel for the first time since the November OPEC deal to cut production. The Aussie headed for a weekly loss and the commodity-linked Canadian dollar was hit hard as well. Risk aversion in the markets helped boost the safe haven yen. The dollar fell to 112.08, moving off yesterday’s seven-week high of 113.04 yen. The main risk event for the greenback will be [..]

Forex Market Review (European Session) – Dollar at 113-yen after jobless claims before easing; strong Eurozone and UK PMI data

Posted on May 4, 2017 at 3:08 pm GMT

Plenty of data hit the markets today, including weekly jobless claims out of the US and April services PMI data for the UK and Eurozone, which also saw the release of final composite PMI figures for the same month. The dollar, as gauged by the dollar index, was down two-tenths of a percent in late European session trading with dollar / yen close to the day’s open of 112.73. Out of the US, last week’s jobless claims fell by 19,000 [..]

Forex Market Review (Asian Session) – Aussie falls to four-month low; US dollar hits six-week high versus yen after FOMC; gold tumbles

Posted on May 4, 2017 at 7:32 am GMT

The dollar was firmer today and held onto gains after rallying to a six-week high against the yen on a hawkish Federal Reserve yesterday. The FOMC unanimously decided to leave interest rates unchanged but signaled that the recent disappointing US economic data would not derail plans for further rate hikes this year. The Fed indicated that it saw the slowdown in first quarter growth as transitory. The markets reacted positively to the FOMC statement and are still pricing in a [..]

Forex Market Review (European Session) – Dollar modestly up ahead of Fed; Brexit developments dominate sterling movements

Posted on May 3, 2017 at 3:02 pm GMT

Investors had a lot to digest in terms of data in today’s European session trading hours. Eurozone first quarter preliminary GDP estimates showed the region is in for a promising start to the year. Contrasting this, euro area producer prices showed a slowdown in March. In other news, the UK construction PMI picked up from yesterday’s upbeat manufacturing number and surprised to the upside, while markets were on the receiving end of important data out of the US as well. [..]

Forex Market Review (Asian Session) – Kiwi jumps on jobs data; Dollar subdued ahead of FOMC

Posted on May 3, 2017 at 7:33 am GMT

The dollar was little changed against the yen and the euro as markets awaited the Federal Reserve to complete a two-day policy meeting later today. Many say it will be a non-event since the Fed is not expected to make any changes to interest rates and there will not be a press conference. But investors will look for any hints concerning a June rate hike in the statement that will be released. Markets are currently giving a fairly high probability [..]

Forex Market Review (European Session) – Strong UK manufacturing PMI boosts sterling; dollar at 1-½-month high versus the yen

Posted on May 2, 2017 at 2:52 pm GMT

The strong manufacturing PMI number out of the UK as well as economic releases out of the Eurozone, were among the highlights of the day in terms of data hitting the markets during today’s European session trading. Beyond these, geopolitics were once again an important factor affecting investor sentiment. The dollar index, measuring the greenback’s strength versus the currencies of six major trading partners, was up one-tenth of a percent and slightly above the 99 level during late European session [..]

Forex Market Review (Asian Session) – Yen and gold softer; aussie fluctuates after RBA

Posted on May 2, 2017 at 7:23 am GMT

The yen and gold held losses as risk appetite picked up due to easing concerns over North Korea, which helped offset soft data from China today. US President Donald Trump said on Monday that he would be willing to meet with North Korea’s leader Kim Jong Un. Meanwhile, a tentative deal by the US Congress to avert a government shutdown eliminated another concern for the markets. Data out of China today showed softer-than-expected factory activity in the world’s second largest [..]

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