Daily Market Analysis

European session – Sterling up after May agrees Brexit white paper; Dollar hits 7-week low

Posted on January 25, 2017 at 3:55 pm GMT

UK Prime Minister Theresa May said on Wednesday that she plans on producing a policy document (a so called ‘white paper’) for parliament outlining her proposals on how the Brexit process should take place. The news helped push sterling higher as it hit a near 6-week high against the dollar and a near 3-week high against the euro. In afternoon European session GBP / USD was last at 1.2563 (up 0.34%) and EUR / GBP at 0.8535 (down four-tenths of a [..]

Asian session – Aussie drops following inflation; US dollar in uneasy calm

Posted on January 25, 2017 at 8:35 am GMT

The US dollar declined a little but then rebounded back to almost unchanged during today’s Asian session, as traders were still trying to weigh the impact of the new administration’s trade and economic policies. The dollar index traded in a relatively narrow range of 100.15 to 100.41, while there were few new developments out of the United States. Existing home sales for December dropped 2.8% instead of a drop of only 1.1% expected by economists, but the miss was mostly [..]

European Session – Pound fluctuates on Supreme Court ruling; Loonie jumps on pipeline deal

Posted on January 24, 2017 at 4:42 pm GMT

The pound see-sawed in today’s European session as the British currency saw volatility both before and after the Supreme Court’s ruling on the triggering of Article 50. The US dollar recovered from earlier lows, while the Canadian dollar surged after Donald Trump approved the construction of a major pipeline from Canada to the United States. The greenback struggled for upwards momentum on Tuesday as it attempted to move away from multi-week lows. The dollar index pared most of its losses [..]

Asian session – Dollar steadies after Trump protectionism-related sell-off

Posted on January 24, 2017 at 8:35 am GMT

The US dollar steadied during Asian trading after the dollar index briefly traded under the 100 level, while dollar / yen traded at its lowest in almost 2 months. The US dollar index dropped to 99.92 before rebounding to 100.21 in late Asian trading as support emerged for the greenback. In addition, dollar / yen fell to as low as 112.52 before recovering above the 113 handle at 113.12. Overall trading was volatile – particularly in dollar / yen as [..]

European Session – Dollar steadies near 1½-month lows as Trump angst continues to worry markets

Posted on January 23, 2017 at 3:34 pm GMT

Investor anxiety over Donald Trump’s policies continued to dampen market sentiment in European trading on Monday as the US dollar languished near 6½-week lows against a basket of currencies. The dollar index hit the lowest since December 8, touching 100.21, before recovering slightly to around 100.45 in late European session. Against the yen, the greenback hovered around 113.50 after dropping as low as 113.16 in the Asian session, while the euro eased slightly from 1½-month highs of 1.0754 dollars. The [..]

Asian session – US dollar extends losses after Trump inauguration

Posted on January 23, 2017 at 8:28 am GMT

The US dollar extended its decline from Friday, as the market continued to lighten up on long dollar positions after Donald Trump’s inauguration speech. According to analysts, Trump’s speech was nationalistic and protectionist in tone as it stressed the need to produce goods in the United States and to hire US workers. The Trump administration looks more likely to follow a unilateral approach on economic and trade policy. There was less in the speech about upcoming fiscal stimulus; a theme [..]

European Session – Markets steady ahead of Trump’s inauguration; Oil rallies ahead of compliance meeting

Posted on January 20, 2017 at 4:16 pm GMT

Currency markets were relatively calm in Friday’s European session as global attention turns to President-elect Donald Trump’s inauguration ceremony in Washington. Investors will be eagerly watching for further clues on Trump’s economic policies in his inauguration address as much uncertainty remains over whether the new administration will implement many of the pledges made during the election campaign. The greenback fluctuated around 115 yen for much of the session, having recovered from its Asian session low of 114.53 to peak at [..]

Asian session – Dollar backtracks slightly ahead of Trump inauguration; Chinese GDP in line

Posted on January 20, 2017 at 8:32 am GMT

The US dollar posted some modest losses during today’s Asian session, as a speech by Fed Chair Janet Yellen in Stanford sounded a little less hawkish than the one given the previous day in San Francisco. There was also uncertainty ahead of Donald Trump’s key inaugural address later in the day, where economic issues could be featured given Trump’s pre-election promises of more jobs and faster economic growth. Chair Yellen stressed the need for a gradual approach to higher interest [..]

European Session – Euro tests $1.06 as Draghi plays down threat from rising inflation

Posted on January 19, 2017 at 4:03 pm GMT

The euro came under pressure on Thursday as ECB President Mario Draghi played down any immediate risks from the recent pick-up in inflation across the Eurozone. The US dollar meanwhile continued to advance higher following yesterday’s hawkish remarks by Fed Chair Janet Yellen, and the pound was also back in demand. As widely expected, the European Central Bank held its three key interest rates unchanged today at its first policy meeting of the year. In addition, the Bank kept the [..]

Asian session – Yen tumbles as dollar benefits from Yellen’s rate views

Posted on January 19, 2017 at 8:48 am GMT

The Japanese yen was the main loser of Thursday’s session as stability in global risk assets caused some profit-taking in the safe haven currency. Dollar / yen rallied especially strongly as Fed Chair Janet Yellen expressed views that were more in line with what the hawks in the Federal Reserve were saying recently. Specifically Yellen said that a delay in raising rates could have negative consequences for inflation and / or financial stability and that she saw a steady pace [..]

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