Daily Market Analysis

Forex Market Review (European Session) – Euro slips ahead of French vote; sterling hit by disappointing UK retail sales data

Posted on April 21, 2017 at 2:51 pm GMT

Sterling tumbled after UK retail sales data significantly missed expectations on all counts. The euro slipped despite stronger PMIs as French elections loom. The safe haven yen was supported against a backdrop of event and geopolitical risk. Cable dipped below the key $1.2800 level in response to a disappointing UK retail sales report. Month-on-month retail sales fell 1.8% in March after a 1.7% increase in February. The headline figure came in at 1.7% year-on-year versus the 3.4% forecast. The quarterly [..]

Forex Market Review (Asian Session) – Euro holds above $1.07; dollar supported by Mnuchin comments on tax reform

Posted on April 21, 2017 at 7:42 am GMT

Risk aversion dominated the markets, following news of the terrorist attack in Paris and risk ahead of the French elections, giving safe havens a boost. Investors were already in countdown mode to Sunday’s first round vote in France, which kept the euro subdued. A recent poll showed Macron at 24%, Le Pen at 21.5%, Fillon at 20% and Melenchon at 19.5%, making it a very tight race. Limited action is expected for the euro ahead of the vote although flash PMI [..]

Forex Market Review (European Session) – Euro and sterling hold gains against dollar while yen underperforms

Posted on April 20, 2017 at 2:48 pm GMT

The euro was relatively firm on the day while the yen was one of the worst performing major currencies. The dollar was mixed but softer against the majors like the euro and sterling, which helped commodity prices higher. The dollar index, which gauges the US currency against six major counterparts, fell to a three-week low of 99.37. Data out of the Eurozone included German PPI which was flat in March, versus expectations of a 0.2% month-on-month gain. It rose 3.1% [..]

Forex Market Review (Asian Session) – Kiwi rallies after New Zealand inflation rises to 5-year high

Posted on April 20, 2017 at 7:42 am GMT

The New Zealand dollar was one of the best performers after inflation beat forecasts. Elsewhere, most major currency pairs remained in recent ranges as geopolitical concerns and French election risks are keeping investors cautious. Inflation in New Zealand accelerated to 2.2% year-on-year versus 2.0% expected and was the highest in five years. On the quarter, CPI rose 1.0% versus 0.8% expected. Soon after the release of the data the kiwi surged against its US counterpart to $0.7043 and held gains [..]

Forex Market Review (European Session) – Dollar lacks momentum on falling yields, doubts over Trump

Posted on April 19, 2017 at 2:47 pm GMT

Besides final Eurozone inflation data for the month of March and some data on US crude oil inventories, investors didn’t have much to digest in terms of economic data during today’s European session trading. Political developments were once again on the spotlight. The dollar index gained some ground today after three straight days of falls, but even at its highest it failed to break above the 100 level. The greenback lost part of its allure as the yields on US [..]

Forex Market Review (Asian Session) – Sterling holds gains at six-month highs; aussie underperforms

Posted on April 19, 2017 at 7:39 am GMT

Sterling held on to gains made after surging to its highest level in more than six months on Tuesday in reaction to an announcement by UK Prime Minister Theresa May who surprised markets by calling a snap general election in June. Markets see a sure win for Theresa May and the Conservative party and expect that this would strengthen her position during the Brexit negotiations as well as stabilize domestic politics. The pound rallied to a high of $1.2904 by [..]

Forex Market Review (European Session) – Pound surges on early election call by PM May; Dollar index below 100

Posted on April 18, 2017 at 3:08 pm GMT

In the absence of major data releases, the main movements today pertained to political developments including the UK Prime Minister Theresa May’s decision to call early elections in order to, among others, establish a stronger mandate in negotiating the nation’s exit from the EU. Looking at the dollar index, a broader measure of dollar strength, it touched a near three-week low as it fell below the 100 mark to reach 99.82. The index was marginally below 100 in late European [..]

Forex Market Review (Asian Session) – Dollar rebounds off five-month lows against yen; focus on US – Japan dialogue

Posted on April 18, 2017 at 7:40 am GMT

The US dollar rebounded on Tuesday, with the help of some comments from US Treasury Secretary Steven Mnuchin, which restored some demand for the greenback. US Treasury yields moved higher, which was supportive for the dollar and lifted it off five-month lows against the yen. The dollar index, which gauges the US currency against a basket of six major counterparts, was flat around 100.18. Mnuchin said that a strong US dollar would be positive over the long term, although he did [..]

Forex Market Review (European Session) – Dollar moderates Trump-driven losses after upbeat US jobless claims data

Posted on April 13, 2017 at 3:11 pm GMT

The dollar index against major currencies regained the key 100 level and the greenback’s losses against the yen that occurred after US President Donald Trump’s comments yesterday, have moderated. Late on Wednesday the President said the dollar is getting too strong and makes American goods more expensive overseas. Geopolitics was still also on the minds of investors today but their nervousness has somewhat abated. Some US data releases today briefly shifted investors’ focus away from concerns about North Korea, Syria, [..]

Forex Market Review (European Session) – Dollar moderates Trump-driven losses after upbeat US jobless claims data; gold hits new 5-week high

Posted on April 13, 2017 at 3:04 pm GMT

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