Daily Market Analysis

Asian Session – Euro gains on positive outcome of Dutch elections; Dollar extends post-FOMC losses; gold rallies

Posted on March 16, 2017 at 8:22 am GMT

The US dollar remained weak against its major counterparts during the Asian session after making big losses on Wednesday despite the Federal Reserve delivering a rate hike. Following a two-day meeting, the Fed announced an increase in its benchmark interest rates by 25 basis points to a range of 0.75% – 1.00%. This was widely expected by the markets so the focus was on the projection for further hikes. It was apparent in the statement issued after the FOMC meeting [..]

European Session – Stronger sterling despite weakening wage growth; All eyes on Fed guidance

Posted on March 15, 2017 at 3:46 pm GMT

Today saw the release of important jobs data out of the UK as well as inflation and retail sales data out of the US. Meanwhile, market participants will be closely paying attention to today’s FOMC meeting, as well as developments that have to do with the Dutch elections, which are also taking place today. The dollar was weaker against a basket of currencies during today’s European session trading. It seems that traders are awaiting the outcome of the Fed’s meeting [..]

Asian Session – Dollar subdued ahead of Fed; oil jumps on inventory decline

Posted on March 15, 2017 at 8:18 am GMT

The US dollar traded in a narrow rage against the yen as investors await the outcome of the Federal Reserve’s two-day policy meeting later today. It is widely expected that the FOMC will announce a rate hike. The euro tumbled against the pound as markets look to the Dutch elections taking place today. Data out of Japan during the Asian session was shrugged off by the markets as today’s risk events are the main focus. Japan’s industrial output fell 0.4% [..]

European Session – Stronger dollar ahead of Fed meeting; Political uncertainty dominating Europe

Posted on March 14, 2017 at 3:56 pm GMT

There were some economic data releases during today’s European session trading but nothing significant to ponder on as most investor attention remains on the Federal Reserve’s two-day meeting which commences later today. The dollar index, which measures the US currency’s strength relative to major counterparts, was last at 101.59, up three-tenths of a percent for the day. A Fed hike is widely expected by market participants and focus now shifts on the kind of message the central bank will deliver. [..]

Asian Session – Pound tumbles across the board after approval of Brexit bill; dollar strengthens ahead of FOMC

Posted on March 14, 2017 at 8:27 am GMT

Currency markets were in a wait-and-see mode during the Asian session as investors were cautious ahead of central bank meetings this week (which include the Federal Reserve, the Bank of Japan and the Bank of England) and the Dutch elections on Wednesday. These risk events prevailed over strong Chinese economic data released today. The FOMC begins its two-day policy meeting today and it is widely expected to increase interest rates by least a quarter of a percentage point. Solid US [..]

European Session – Euro retreats from 1-month high; pound rallies

Posted on March 13, 2017 at 3:53 pm GMT

The US dollar was mixed during the European session, while the yen was supported by cautiousness among investors ahead of the FOMC statement. The euro slipped from a one-month high hit earlier against the dollar, while the pound was mostly higher on expectations that a bill regarding Brexit will be passed today by the UK House of Commons. The upcoming FOMC meeting remained the focal point for the markets today in the absence of key economic data releases. The only [..]

Asian Session – Euro rallies to 3-month high against Swiss franc; dollar soft ahead of FOMC

Posted on March 13, 2017 at 8:39 am GMT

The markets turn their focus on a lot of event risk this week, with the highlight being the FOMC meeting on Tuesday and on Wednesday. A light economic calendar today led market players to re-adjust dollar positions after the strong US nonfarm payrolls report on Friday. Profit-taking on dollar / yen was extended today after the pair rallied to a 2-month high of 115.49 on Friday. The greenback headed lower to touch an Asian session low of 114.50. Investors are [..]

European Session – Strong US jobs growth as rate hike seems to had been already priced in

Posted on March 10, 2017 at 4:11 pm GMT

As anticipated, the much-discussed US jobs report was first and foremost in investor minds today as, among others, it was widely viewed as the last factor that could sway the Fed’s final decision next week away from what seemed imminent, that is to hike rates in its upcoming meeting. Besides that, market participants also had to digest the jobs report out of Canada and some data out of the UK. The US nonfarm payrolls report showed an addition of 235,000 [..]

Asian Session – Gold extends losses; All eyes on US jobs report

Posted on March 10, 2017 at 8:55 am GMT

The dollar remains relatively strong, posting gains against most major counterparts with the exception of the euro which was helped in the aftermath of yesterday’s ECB meeting and subsequent press conference by its President, Mario Draghi. As a result of dollar strength, gold was pushed below $1200 an ounce. The European Central Bank signaled yesterday it currently does not plan to take further accommodative measures to boost the Eurozone economy as there are positive signs on the horizon. This helped a [..]

European Session – Euro gains on less dovish Draghi, Macron’s lead

Posted on March 9, 2017 at 4:01 pm GMT

The main event for the day was the European Central Bank’s policy meeting. The ECB kept monetary policy on hold as expected while its President, Mario Draghi, struck a less dovish tone than usual that helped boost the euro. In terms of economic releases, US initial jobless claims gathered most investor attention. The ECB left its key interest rates unchanged as it convened for its policy meeting today (refinancing rate at 0%, deposit rate at -0.4% and marginal lending rate [..]

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