Daily Market Analysis

European Session – Markets look to Trump press conference for direction; dollar edges higher

Posted on January 11, 2017 at 3:25 pm GMT

Major currencies see-sawed in their recent trading ranges, with the US dollar edging upwards ahead of the much anticipated press conference by Donald Trump later in the day. The President-elect is due to hold his first press conference since his election win at around 1600 GMT where he is expected to provide some clarity on his policies. Investors will be particularly interested in his trade and economic policies given much talk about a fiscal stimulus and import tariffs. The dollar [..]

Asian session – US dollar recovers a little ahead of key Trump conference but Mexican peso hits record low

Posted on January 11, 2017 at 8:33 am GMT

The US dollar recovered some ground during Wednesday’s Asian trading, but it had given back some of those gains by the end of the session. The dollar index was around the 102 level, having traded as high as 102.20. Currency markets were relatively quiet ahead of a press conference by President-elect Donald Trump, where he is expected to outline some of his economic policies. There is considerable uncertainty about what economic policies the new President will adopt. On the positive side, fiscal [..]

European Session – Dollar struggles for direction in subdued trading

Posted on January 10, 2017 at 3:51 pm GMT

Currency markets were muted in European trading today as the absence of major data and investor angst about US President-elect’s press conference on Wednesday led to more cautious trading. The US dollar see-sawed around the 116 yen level while the euro was unable to hold above $1.06 by late European trading. Market concerns about what Donald Trump might reveal about his policies, particularly on trade, tax cuts and relations with China when he holds his first press conference since the [..]

Asian session – Dollar retreats ahead of Trump press conference

Posted on January 10, 2017 at 8:06 am GMT

The US dollar posted some modest losses during Tuesday’s Asian trading despite relatively hawkish remarks from Federal Reserve officials the previous day. Dollar / yen was below 116 at 115.72 while the euro was trying to climb above the 1.06 level at 1.0598. The euro had climbed as high as 1.0627 earlier in the session. Boston Fed’s Eric Rosengren called for a faster pace of interest rate hikes compared to the one-a-year pace of the previous two years while Dennis [..]

European Session – Dollar erases gains but pound steadies as hard Brexit fears linger

Posted on January 9, 2017 at 4:23 pm GMT

The yen saw increased demand in Monday’s European session, leading the US dollar to give up its earlier gains against the Japanese currency. Other currencies also lost ground against the yen, particularly the British pound, which has been hit today by fresh concerns of a hard Brexit following comments by UK PM Theresa May over the weekend. Softer US treasury yields helped the yen higher in late European trading, with the dollar slipping back below 117 yen to around 116.35 [..]

Asian session – Dollar extends employment report gains while pound drops on ‘hard Brexit’ talk

Posted on January 9, 2017 at 8:25 am GMT

The US dollar managed to maintain Friday’s gains or even extend them against certain currencies during Monday’s Asian trading. Particularly against the Japanese yen the dollar climbed to around 117.50, while against the euro it traded at 1.0531. The dollar had earlier pushed the single currency to as low as 1.0515. Liquidity was overall thin because of a bank holiday in Japan, while there was a relative absence of market-moving developments following Friday’s all-important jobs numbers. On Friday, the US [..]

European session – Dollar stays pinned despite positive data

Posted on January 5, 2017 at 3:28 pm GMT

The US dollar remained under pressure and an attempt to stage a serious rebound was met with selling. Still, the dollar index managed to stay away from its late Asian session low of 101.71, but an attempt to scale above 102.51 level in mid-session failed. The index was at 102.00 at the time of writing shortly after the release of an upbeat December Services ISM. Dollar / yen was once again below 116 at 115.86, while euro / dollar was [..]

Asian session – Sharp losses for US dollar as profit-taking accelerates

Posted on January 5, 2017 at 9:32 am GMT

The US dollar continued its corrective move from the previous day despite a slightly hawkish set of Federal Reserve meeting minutes released during Wednesday’s US session. Dollar / yen moved sharply lower as it successively fell through the 117 and 116 handles during today’s session. Dollar / yen was last trading at 115.86 in volatile trading. Other Asian currencies also posted significant gains versus the dollar – not least the Chinese yuan. The Chinese yuan provided for some excitement as [..]

Asian session – US dollar off highs while European PMIs, flash inflation on tap

Posted on January 4, 2017 at 8:08 am GMT

The US dollar index backed off a little from its 14-year high registered the previous day, as traders took stock of the greenback’s strong start to the New Year. Manufacturing sentiment in the US, China, the UK and Japan seemed to confirm that the global economy was starting 2017 in a positive spirit, which augured well for further Fed rate hikes and an even stronger dollar. The euro managed to reclaim the 1.04 level for now, having dipped to as [..]

European session – Dollar rallies and pound gains on strong manufacturing surveys

Posted on January 3, 2017 at 3:54 pm GMT

The US dollar continued its upward march, scaling new highs following the release of a very bullish manufacturing survey for December. The much awaited ISM manufacturing PMI came in better-than-expected at 54.7 compared to the previous month’s 53.2 reading and analyst forecasts of a 53.6 print. What was especially noteworthy however was the big jump in the prices paid component, as the sub-index rose to 65.5 from 54.5. Obviously such a big move seems to confirm worries about future inflation [..]

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