Daily Market Analysis

Forex Market Review (European Session) – Euro and pound shine; dollar firm despite disappointing US GDP data

Posted on April 28, 2017 at 2:32 pm GMT

The euro and the pound outperformed other currencies in Friday’s European session, while dollar traders looked beyond disappointing US GDP figures to drive it higher versus the yen. The euro rebounded sharply from yesterday’s ECB-induced losses after stronger-than-expected inflation data for the Eurozone revived expectations that the ECB may soon begin to withdraw monetary accommodation. Headline inflation jumped from 1.5% to 1.9% year-on-year in April according to the flash estimates, just shy of February’s four-year high of 2.0% and above [..]

Forex Market Review (Asian Session) – Sterling rallies ahead of UK GDP

Posted on April 28, 2017 at 7:48 am GMT

The yen was better bid today as risk sentiment was the main driver despite a slew of data out of Japan during today’s Asian session. Japan’s core CPI number remained well below the Bank of Japan’s 2% target and rose at a slower pace in March by 0.2% year-on-year versus expectations for a 0.3% increase. Household spending was weak as it fell much more than expected by 1.3% in March from a year earlier. Other data for March showed industrial [..]

Forex Market Review (European Session) – Euro lower after Draghi; ECB overshadows US data

Posted on April 27, 2017 at 3:08 pm GMT

The euro had a choppy session and ended lower against the dollar as markets were disappointed by ECB President Mario Draghi’s dovish language on inflation and lack of discussion on forward guidance or on exiting the current ECB stimulus program. Draghi’s press conference overshadowed a raft of US economic data released around the same time as he was speaking. Despite the softer data on durable goods orders, initial jobless claims and pending home sales, the dollar index was higher on [..]

Forex Market Review (Asian Session) – Dollar lower after Trump tax plan outline disappoints; euro steady ahead of ECB

Posted on April 27, 2017 at 7:38 am GMT

US Treasury yields turned lower and the dollar trimmed recent gains versus the yen, helping gold recover from a two-week low. US President Donald Trump made his tax plan announcement on Wednesday, which was viewed as lacking in detail, prompting a fall in the 10-year US Treasury yield to 2.30%, moving off a two-week high of 2.35% reached on Wednesday. Against the yen, the dollar is lower from the near one-month high of 111.77 yen hit on Wednesday, trading just [..]

Forex Market Review (European Session) – Euro eases from highs; dollar steady ahead of Trump tax plans

Posted on April 26, 2017 at 3:02 pm GMT

The euro eased back from its earlier highs in Wednesday’s European session, while the US dollar largely held on to its gains as the market’s attention shifted to the much-anticipated announcement on tax reforms by the US Treasury Department. After two days of solid gains, the euro succumbed to profit taking as it pulled away from the 5½-month high of 1.0950 touched earlier in the day to ease to around 1.0880 dollars in late European session. Another factor driving the [..]

Forex Market Review (Asian Session) – Aussie hurt by miss on inflation; yen weakens while euro hits new 5½-month high

Posted on April 26, 2017 at 7:50 am GMT

The aussie weakened after Australian inflation data missed forecasts. Risk appetite continued to pressure safe havens like the yen and gold. The euro was supported by the euphoria of the outcome of round one of the French elections. Australia reported that its headline inflation rose to an annualized rate of 2.1% in Q1, pushing it into the Reserve Bank of Australia’s target band of 2 to 3% for the first time since the September quarter of 2014. However, the result [..]

Forex Market Review (European Session) – Euro still buoyed by Macron win; Loonie under pressure from Trump

Posted on April 25, 2017 at 3:01 pm GMT

Markets remained in risk-on mood in European trading on Tuesday with the euro nudging further upwards against most of its major peers, while the safe-haven yen extended its declines. European and US equities also continued to make gains on the back of Sunday’s French election result where the centrist Emmanuel Macron became the frontrunner to win the second round on May 7. The euro was pushing towards fresh highs against the US dollar as it powered ahead to hit a [..]

Forex Market Review (Asian Session) – Euro steady while yen and gold ease; Canadian dollar weakens

Posted on April 25, 2017 at 7:51 am GMT

The euro remained steady, near five-month highs against the dollar, while the yen and gold retreated as the outcome of the French elections dampened demand for safe havens. Markets shrugged off North Korean artillery drills carried out today to mark the 85th anniversary of the Korean People’s Army. Currency markets were relatively quiet during Asian trading due to a lack of key economic data releases as well as a public holiday in Australia and New Zealand, which left investors to [..]

Forex Market Review (European Session) – French election outcome dominates markets; risk-on appetite resumes

Posted on April 24, 2017 at 3:01 pm GMT

There were some economic releases hitting the markets during today’s European session trading, including the German Ifo survey measuring business morale in Europe’s largest economy. But the outcome of the first round of French presidential elections was undoubtedly the factor underlying most major movements in financial markets today. The pro-EU Emmanuel Macron coming in first, ahead of anti-EU rival Marine Le Pen, in the first round of French presidential elections helped boost the euro in today’s trading. Specifically, the single [..]

Forex Market Review (Asian Session) – Euro spikes and gold slips as markets see relief rally after first round of French elections

Posted on April 24, 2017 at 6:48 am GMT

The euro spiked to a five-month high against the dollar on the news that Emmanuel Macron passed through to the second round of the French elections with the most votes. The centrist candidate is viewed as market-friendly as he is pro-business and pledges to boost the French economy with a multi-billion-euro stimulus plan if he becomes president. The latest vote count showed Macron winning 23.9% of the votes against 21.4% for far-right candidate Marine Le Pen, according to figures from the [..]

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