Daily Market Analysis

European Session – Dollar picks up ahead of FOMC minutes; yen outperforms; pound weighed by data

Posted on February 22, 2017 at 3:18 pm GMT

The US dollar was stronger against most major currencies except against the yen, which broadly outperformed. The euro was weak on French election jitters. The main focus of the markets was on the upcoming FOMC minutes. The euro hit a fresh one month low against the dollar at 1.0493 after dipping below the key 1.05 level for the first time in six-weeks. The single currency was pressured mainly by political developments rather than by economic data. Concerns over the upcoming French [..]

Asian Session – Dollar falls against yen ahead of FOMC minutes; euro under pressure on political woes

Posted on February 22, 2017 at 8:34 am GMT

The dollar was weaker against the yen as markets await the FOMC minutes due later in the day for clues about the Fed’s views on interest rates. The euro remained under pressure by European political concerns. The yen was supported by comments from Bank of Japan Governor Haruhiko Kuroda who said that the chance of negative rates is low in the near future. Meanwhile, Japanese Finance Minister Taro Aso made similar remarks. The dollar slipped to an Asian session low [..]

European Session – Euro falls despite robust PMI numbers; Dollar broadly stronger

Posted on February 21, 2017 at 4:34 pm GMT

The most important economic releases for the day pertained to flash PMI estimates out of the Eurozone and the US, whilst the day had important central bank figures, such as the Bank of England’s Governor Mark Carney, appearing for a speech. The US dollar was gaining across the board today on rising expectations of a March Fed rate hike. The dollar gained against all six currencies that make up the dollar index as the index rose to 101.49, marking a [..]

Asian Session – Dollar strength weighs on yen

Posted on February 21, 2017 at 7:08 am GMT

The US dollar strengthened during the Asian session on Tuesday, helped by higher US Treasury yields. The yen weakened despite upbeat manufacturing PMI data out of Japan today. The aussie slid against the greenback to move off an early session high of 0.7690. The Reserve Bank of Australia published minutes of its latest policy meeting. The minutes had an optimistic outlook regarding the prospects of Australia’s economic growth. This view diminishes the scope for rate cuts in the near future. [..]

European Session – Pound up as Lords begin Brexit bill debate; Dollar range-bound in holiday-thinned trading

Posted on February 20, 2017 at 3:46 pm GMT

The US dollar was stuck in a tight range on Monday as markets struggled for direction in the absence of any major data releases and with US markets closed for President’s Day holiday. Having moved away from Friday’s one-week lows in Asian trading, the greenback flat-lined against the yen in today’s European session to hover around 113.10 yen. Traders ignored solid economic indicators out of the US last week, as well as a more hawkish Yellen, to drive US treasury [..]

Asian Session – Dollar gains against yen after weak Japan trade data

Posted on February 20, 2017 at 6:38 am GMT

Trading was subdued in a quiet Asian session. The US dollar index was little changed but the US currency was slightly firmer, after a mixed performance last week. Disappointing trade data out of Japan weighed on the yen. Japan’s trade deficit was wider-than-expected in January. The 1.09 trillion-yen deficit was the first in five months and was more than the 629.3 billion expected. The dollar index traded at 100.94, while a weaker yen helped the dollar recoup earlier losses to [..]

European Session – Dollar mixed ahead of US long weekend; Pound hit by weak retail sales data

Posted on February 17, 2017 at 3:07 pm GMT

Risk appetite faded on the week’s last trading day as political uncertainty in Europe and the US weighed on investor sentiment. The US dollar was mixed in today’s European session as it fell against the yen but moved higher against most other majors, in particular the euro and the pound. This made the yen the best performing currency of the day as it benefited from its safe haven status. The dollar index, which gauges the greenback’s strength against the currencies [..]

Asian Session – Dollar steadies after drop to one-week low against yen

Posted on February 17, 2017 at 6:42 am GMT

The US dollar continued its corrective move against the yen in Asia today. After hitting a more-than two-week high above 114-yen this week, following hawkish comments from Fed Chair Janet Yellen and upbeat US inflation and retail sales data, the greenback failed to maintain the rally. The dollar index, which measures the US currency against a basket of six other major counterparts, was flat in Asian trading after having dropped 0.7 per cent on Thursday. Dollar/yen traded just below 113.50 [..]

Mid-European Session – Euro and pound edge higher as dollar runs out of steam

Posted on February 16, 2017 at 12:55 pm GMT

Rising expectations of a near-term rate hike by the Fed were unable to reverse the US dollar’s slide in European trading on Thursday. The US currency extended its Asian session losses to hit a low of 113.53 yen in mid-European trading. The declines were mainly triggered by profit taking following a two-week rally for the greenback since the start of the month. The dollar had hit a 2½-week high versus the yen yesterday, while the dollar index rose to 5-week [..]

Asian Session – USD loses strength; Aussie hits near 2-year high against euro after Australian jobs data

Posted on February 16, 2017 at 8:52 am GMT

The US dollar lost some strength against the yen today after making some strong gains on the back of hawkish comments from Fed Chair Janet Yellen on Tuesday and Wednesday. The main focus in the Asian session was the aussie, which saw some volatility after Australian jobs data. The aussie initially spiked up after the data showed that the unemployment rate in Australia unexpectedly fell in January to 5.7 percent from a prior 5.8 percent. This led euro/aussie to revisit [..]

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