Daily Market Analysis

European Session – Oil and gold steadier as dollar holds near highs in thin Thanksgiving trade

Posted on November 24, 2016 at 3:14 pm GMT

Currency markets and commodities were steadier in European trading on Thursday as the dollar eased slightly from the fresh highs set earlier in the day. Trading volumes were thin today due to US markets being closed for the Thanksgiving holiday but Wednesday’s strong US data and hawkish Fed minutes were enough to keep the dollar’s bullish momentum going. The US dollar set a new 8-month high of 113.53 yen at the start of the European session but had eased slightly [..]

Asian Session – Dollar breaks above 113 yen as Fed minutes intensify rate hike expectations

Posted on November 24, 2016 at 8:22 am GMT

The US dollar was once again making fresh highs in Thursday’s Asian session as strong US data and hawkish FOMC minutes fuelled expectations that the Fed is poised to raise rates in December. Wall Street also extended its rally with the Dow Jones and S&P 500 closing at another record high on Wednesday as investors bet that the incoming Trump administration will boost fiscal spending. However, stocks in Asia were mixed today as rising US treasury yields continued to weigh [..]

European Session – Strong durable goods propel dollar above 112 yen; Gold sinks below $1200

Posted on November 23, 2016 at 4:06 pm GMT

The dollar rally showed no sign of abating today as much stronger-than-expected US data swiftly un-paused the brief halt in the greenback’s post-election surge. US treasury yields also rallied as expectations that the Fed may have to tighten policy more aggressively than anticipated led to another outflow of funds from government bonds. After a quiet start to the day, major currencies soon moved out of their previous day’s range during Wednesday’s European session as they digested a slew of US [..]

Asian Session – Dollar consolidates around 111 yen; oil lower on fading hopes of OPEC production cut deal

Posted on November 23, 2016 at 7:52 am GMT

The Asian session was relatively quiet due to a public holiday in Japan and due to the US Thanksgiving holiday tomorrow, which resulted in thin liquidity. The US dollar was unable to extend Tuesday’s gains versus the yen. Oil fell on reports that Iran and Iraq have yet to cooperate on output cuts. The dollar index which gauges the US currency against a basket of six major currencies, slid off a 13 1/2-year peak of 101.48 reached last Friday and [..]

European Session – Stocks boosted by oil as dollar attempts to resume rally

Posted on November 22, 2016 at 3:55 pm GMT

Equities were the main winner in Tuesday’s European session as higher oil prices drove up energy shares. The US dollar meanwhile hovered around the 111 level against the yen for most of the day as it attempted to resume its post-election rally that’s been on pause since yesterday. European stocks opened sharply higher on Tuesday on the back of stronger commodity prices and a record close on Wall Street on Monday. US equities extended their move into record territory at [..]

Asian Session – Oil gains on hopes of OPEC agreement to cut output

Posted on November 22, 2016 at 2:34 pm GMT

Oil is increasingly in focus ahead of next week’s OPEC meeting in Vienna. Optimism is growing that a deal will be finalized on November 30 to trim output levels and this is helping lift oil prices. Both international benchmarks, Brent and West Texas Intermediate, gained 1% in the Asian session today. WTI rose to $48.95 a barrel while Brent climbed to $49.61 a barrel. The yen quickly gave back gains made on news of an earthquake in Japan. But there [..]

Mid-European Session – Euro and sterling bounce back as dollar eases

Posted on November 21, 2016 at 12:48 pm GMT

The euro bounced back sharply at the start of Monday’s European session, recovering strongly from last week’s 11-month low of 1.0568 dollars. Political developments over the weekend helped ease some of the uncertainty related to the upcoming French and German elections next year, and this spurred the euro to hit a session high of 1.0648 dollars. The US dollar meanwhile fell back slightly from its early Asian session highs as traders paused for breath. The single currency suffered its longest [..]

Asian Session – Dollar adds to gains versus yen, oil jumps on hopes of OPEC deal

Posted on November 21, 2016 at 7:36 am GMT

The US dollar added to last week’s gains and rose above the 111 yen level in Monday’s Asian session as investors expect the Federal Reserve to hike rates in December. Oil was in focus today as prices jumped on hopes of a production cut deal at an OPEC meeting next week in Vienna. The dollar’s strength continues to dominate the currency markets and the chances of the Fed increasing rates next month have surged since Donald Trump won the US [..]

European Session – Pound slides on Scottish say on Brexit ruling appeal; Dollar set to end week near 14-yr highs

Posted on November 18, 2016 at 4:35 pm GMT

The British pound was one of the worst performers in Friday’s European Session as it was hit by news that the UK Supreme Court will allow Scottish and Welsh lawyers to attend the Brexit hearing, while the US dollar looks set to enjoy a second week of strong gains. Sterling fell sharply today after lawyers representing the Scottish and Welsh governments were invited to have their say in the hearing on whether the High Court’s ruling that the UK government [..]

Asian Session – Dollar rises above 110 yen on looming Fed rate hike

Posted on November 18, 2016 at 7:20 am GMT

The US dollar continues to be bid today, extending gains above the key 110-yen level in Asian trading after Fed Chair Janet Yellen signaled to markets that a rate hike could come relatively soon. In her testimony before the Joint Economic Committee of Congress on Thursday, Yellen said that the US economy has made progress toward the Fed’s goals. She expects moderate economic growth to continue, which would be sufficient to generate further strengthening in the labour market conditions. The Fed [..]

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