Daily Market Analysis

European Session – Yellen and strong data push dollar back towards 13 1/2-year highs

Posted on November 17, 2016 at 3:43 pm GMT

The US dollar was headed back towards yesterday’s 13½-year highs in European trading today after Fed Chair Janet Yellen signalled the Fed is getting close to raising rates, while another set of strong US data further underscored such expectations. In her pre-prepared text of the testimony before the Joint Economic Committee in Congress, Yellen said an increase in the Fed funds target range could become “appropriate relatively soon”. Yellen added that the decision to wait for further evidence of progress [..]

Asian Session – Aussie steady after weak jobs data; greenback in focus ahead of Yellen testimony

Posted on November 17, 2016 at 7:15 am GMT

The Australian dollar was steady despite a disappointing employment report that showed a smaller-than-expected gain in jobs in October. The US dollar was trading lower against the yen in today’s Asian session. The greenback also gave up gains versus the euro. Investors took the opportunity for some profit-taking ahead of a key testimony by Federal Reserve Chair Janet Yellen later today. The dollar edged down against the yen to a session low of 108.54 yen, moving off a five-month high [..]

European Session – Dollar eases after hitting 13.5-year high; pound weighed by slowdown in UK employment

Posted on November 16, 2016 at 3:58 pm GMT

A resumption in the government bond sell-off drove the US dollar to fresh highs in Wednesday’s European trading but equities and commodities fell, weighed by the stronger dollar and rising bond yields. The dollar index, which measures the greenback against a basket of currencies, reached a 13½-year high of 100.53 in mid-European session as US treasury yields continued to head higher again. The yield on 2-year US Treasury notes rose to a fresh 10-month high of 1.03% as investors upped [..]

Asian Session – Dollar consolidates gains in Asian trade; oil extends gains

Posted on November 16, 2016 at 7:46 am GMT

The US dollar consolidated against the yen in the Asian session today after hitting a fresh five-month high on Tuesday. The greenback was given an added boost after strong US retail sales data. There was a pause in the US currency’s rally today, allowing the euro and sterling to rebound slightly. The dollar index fell from a multi-year high reached yesterday and dropped below 100 in the Asian session. The US 10-year Treasury note yield slipped from a 10-month high [..]

European Session – Dollar resumes gains on US data; pound hit by leaked Brexit memo

Posted on November 15, 2016 at 4:02 pm GMT

Risk sentiment was mixed in Tuesday’s European session as commodities held on to their gains even as the dollar resumed its week-long rally. The euro meanwhile fell back from its short-lived rebound but sterling came under pressure on concerns about the UK government’s readiness to trigger Article 50. The US dollar had eased slightly from Monday’s highs at the start of trading today but headed back up again after US retail sales beat expectations. Retail sales in the United States [..]

Asian Session – Dollar trims gains against yen; RBA minutes fail to lift aussie

Posted on November 15, 2016 at 8:11 am GMT

The US dollar rally paused on Tuesday after a big jump on Monday while the sell-off in US Treasuries also took a breather. Asian equity markets were softer following a muted Wall Street session. On Monday, the dollar index closed above 100 for the first time this year as markets are pricing in a Fed rate hike next month and are expecting inflation to rise due to plans for increased fiscal spending by the Trump administration. The index trimmed gains [..]

European Session – Dollar breaks above 108 yen as euro slumps to 11-month low

Posted on November 14, 2016 at 3:36 pm GMT

The US dollar extended its Asian session gains to climb to a near one-year high in European trading on Monday, as the dollar index rose above 100 for the first time since December 2015. Against the yen, the dollar rallied to a 5-month high of 108.48 as the yen fell across the board. The changing outlook for the US economy following the election of Donald Trump as the next American president remains the driver of today’s currency moves. Expectations that [..]

Asian Session – Dollar rises to 5-month high above 107 yen

Posted on November 14, 2016 at 7:49 am GMT

The US dollar received another boost at the start of the new trading week as the Trump factor continued to dominate markets. His plan for fiscal spending, trade restrictions and anti-immigration policies could result in a combination of higher inflation and an increase in the pace of Fed rate hikes, which would boost the dollar. A rise in the dollar/yen pair to a five-month high of 107.64 yen helped lift the greenback across the board in today’s Asian session. The [..]

European Session – Euro and commodity currencies struggle as dollar and pound shine

Posted on November 11, 2016 at 4:40 pm GMT

Emerging market currencies were under pressure from a bullish dollar on the week’s last trading day as US treasury yields continued to edge higher on expectations of a fiscal stimulus by the incoming new president in the United States. The euro was also dragged lower by the resurgent greenback but the pound appeared to enjoy an unexpected boost from Donald Trump’s victory. The US dollar was trading close to yesterday’s 3½-month high just below 107 yen for much of the [..]

Asian Session – Sterling on track for weekly gains, euro tumbles, dollar firm on rate hike expectations

Posted on November 11, 2016 at 8:17 am GMT

The dollar is set to end the week higher as it was boosted after the US elections this week. Donald Trump’s victory gave markets optimism that his fiscal spending plans will boost the US economy. Increased inflation expectations led to a drop in bond prices, while the Dow Jones Industrial Average surged to a record high. Emerging markets sold off sharply. Meanwhile growing expectation of a December rate hike by the Fed is helping boost the dollar. On Thursday, St. [..]

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