Daily Market Analysis

European Session – Dollar and loonie slip on disappointing data; Euro climbs to 1-week high

Posted on December 22, 2016 at 4:24 pm GMT

The US dollar broke out of its tight range in late European trading following soft US consumer spending figures, which spurred the euro to a one-week high. Economic data out of the United States and Canada dominated afternoon trading in Europe today in an otherwise lacklustre session as traders began emptying their desks ahead of the Christmas holiday weekend. The euro jumped higher versus the dollar, hitting a one-week high of 1.0499, on the back of the dollar’s slide. There [..]

Asian Session – US dollar stays away from highs in subdued holiday trade

Posted on December 22, 2016 at 9:05 am GMT

The US dollar was around half a percent away from its 14-year high in holiday-thinned trading during Thursday’s Asian session. The dollar index was just under 103 at 102.93; a safe distance away from its 103.65 high struck on Tuesday. The euro extended its rebound versus the dollar to climb to as high as 1.0455, despite worries that Italy’s third largest bank was burning through its liquidity at a faster rate than previously thought. The lingering question now is how [..]

European Session – Euro firms against dollar; Swedish krona outperforms despite dovish Riksbank

Posted on December 21, 2016 at 3:56 pm GMT

The euro benefited from a weaker dollar and short-covering to climb 0.5% against the US dollar in today’s European session as the greenback continued to drift further away from Tuesday’s 14-year highs. Trading volumes were thin as investors began to wound down ahead of the holiday period. The single currency was trading around 1.0440 dollars in late session, sharply up from yesterday’s 14-year low of 1.0350 dollars. The only data out of the Eurozone was the consumer confidence survey. The [..]

Asian Session – Aussie and kiwi bounce on broadly weaker greenback

Posted on December 21, 2016 at 8:21 am GMT

The broadly weaker US dollar led to a bounce in the euro and sterling today. The Australian and New Zealand dollars also benefitted, as profit-taking on the greenback fueled demand for these higher yielding currencies. Meanwhile, Asian stock markets followed yesterday’s advances in US and European stock markets. A light economic calendar and slow pre-Christmas trading translated into a relatively quiet Asian session. The US dollar index, which measures the dollar against six major currencies, was down from yesterday’s fresh 14-year [..]

European Session – US dollar powers to 14-year high as safe havens back down in terrorist attack aftermath

Posted on December 20, 2016 at 4:00 pm GMT

The US dollar was again making substantial gains in foreign exchange markets against its major peers in today’s European session. In the relative absence of market-moving news, the dollar index hit its highest since the fourth quarter of 2002. The dollar index peaked at 103.65 and was last trading around 103.50. The relative strength index (RSI) for the dollar index crossed above the 70 level line at 71 for the daily chart, which indicates overbought conditions. The dollar however has [..]

Asian Session – Dollar above 117 yen, euro under pressure at $1.03

Posted on December 20, 2016 at 7:55 am GMT

The Bank of Japan announced after a two-day meeting today that it kept its short-term rate target at minus 0.1% and its 10-year Japanese government bond yield target at around zero. The yen was little changed after the news as the BOJ’s decision was expected but what was a positive surprise was the Bank upgraded its assessment of the economy. It was positive about the growth outlook and noted that the economy continued to recover moderately. The dollar traded to [..]

European Session – Pound under pressure on Brexit uncertainty; Dollar tests 117 yen ahead of Yellen

Posted on December 19, 2016 at 3:39 pm GMT

The British pound came under pressure on Monday as markets grew increasingly concerned about the direction of the UK’s Brexit negotiations with the EU. UK politicians have been hinting recently that they are seeking a transitional agreement that would make it easier for British businesses to adjust to life outside the EU. But there were few signs of a quick settlement for such a deal at last week’s EU summit that was attended by UK PM Theresa May and other [..]

Asian Session – Dollar eases from 10-month high against yen, focus turns to Bank of Japan

Posted on December 19, 2016 at 8:14 am GMT

The US dollar started the new trading week by retreated from a 10-month high against the yen due to some risk aversion in the markets today. China-US relations were put to the test over the weekend due to news late on Friday of the seizure of a US underwater drone by China in international waters in the South China Sea. Tensions between the two nations created some market jitters. The dollar fell below the key 118-yen level and touched an Asian [..]

European Session – Aussie and kiwi extend losses against broadly stronger greenback

Posted on December 16, 2016 at 3:22 pm GMT

The US dollar was consolidating gains against the yen, the euro and the pound and was trading a tight range after its Fed-driven surge earlier this week. The stall in the greenback’s rally today gave some relief for gold prices which recouped some of its post-Fed losses. The US currency however extended gains versus the loonie, the aussie and the kiwi. The Australian and New Zealand dollars are high yielders but despite this fact and due to narrower interest rate [..]

Asian Session – Dollar holds gains as markets digest Fed’s hawkish rate hike outlook

Posted on December 16, 2016 at 7:30 am GMT

The US dollar stalled its Fed-driven rally and consolidated against most of its major counterparts in a relatively quiet Asian session. The FOMC’s decision on Wednesday to hike rates and quicken its pace of hiking has taken the US dollar index to a 14-year high. A string of US economic releases on Thursday lent support to the dollar as improving data help reinforce more interest rate increases from the Fed next year. US CPI rose 1.7% year-on-year in the November, [..]

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