Daily Market Analysis

European Session – Dollar targets 107 yen on bets of Trump boost to US economy

Posted on November 10, 2016 at 3:29 pm GMT

The US dollar remained in demand on Thursday following yesterday’s dramatic move that saw the greenback more than reverse its losses from the brief election sell-off. Equities also continued to benefit from the recovery in risk appetite but the sell-off in government bonds extended into today’s European session. Risk sentiment has been improving since US President elect Donald Trump’s acceptance speech on Wednesday where he promised to boost growth and increase spending on infrastructure. The prospect of a fiscal stimulus [..]

European Session – Dollar pares losses as US treasury yields spike up

Posted on November 10, 2016 at 10:40 am GMT

Currency markets stabilized after a turbulent start to the day following Donald Trump’s shock win in the US presidential election. Most investors were caught off guard by the surprise outcome given that Hillary Clinton was seen to be holding a small lead going into polling day. The uncertainty over what policies Trump will pursue on trade, immigration and the economy was enough to trigger a sharp sell-off in risk assets. Asian stocks recorded heavy losses as they bore the brunt [..]

Asian Session – Dollar firm above 105 yen, bond yields rise

Posted on November 10, 2016 at 7:40 am GMT

Bonds extended their sell-off in Asia today as markets made an astonishing comeback in the aftermath of Trump’s victory. The bold changes that President-elect Donald Trump touted in his victory speech on Wednesday led to a huge turnaround in stock and currency markets. The dollar surged as bond prices fell and yields jumped. The dollar held onto gains in Asian trading today as the US 10-year treasury yield hovered around 2%, its highest since January. Increasing odds of a Fed [..]

Asian Session – Gold surges, dollar tumbles, Mexican peso at record low as news outlets project Trump win

Posted on November 9, 2016 at 7:49 am GMT

Risk sentiment took a hit and the dollar tumbled against the yen early on Wednesday along with other risk currencies as it appeared that Donald Trump took the lead in the US presidential election. As election results were coming out showing that Trump won some key states and he was leading in the vote count, it was looking more likely that he could win the election to become the 45th president of the US. Republicans are also projected to keep [..]

European Session – Dollar subdued as voting opens in US presidential election

Posted on November 8, 2016 at 4:08 pm GMT

Trading was subdued in Tuesday’s European session as most major currencies held steady as voting began in the United States for the country’s next President. The dollar extended yesterday’s gains to climb to a fresh one-week high of 104.85 yen, while US equities opened slightly lower in cautious trading on election day. Risk sensitive currencies such as the Australian and New Zealand dollars gave up some of their gains from the Asian session as some traders became skittish ahead of [..]

Asian Session – Dollar steady ahead of voting; aussie down on disappointing China trade data

Posted on November 8, 2016 at 7:53 am GMT

The currency market is clearly positioning for a Clinton win and this helped the US dollar remain firm against the yen today after a big jump on Monday. The latest polls are showing that Democrat Hillary Clinton has a lead of four percentage points against Republican candidate Donald Trump as voting begins in the US today. Investors appear to be mainly focused on the US elections and data out of China today had little impact on the markets. US equity [..]

European Session – Dollar holds near day’s highs as equities rally, yen retreats

Posted on November 7, 2016 at 3:34 pm GMT

The risk-on sentiment brought on by the FBI’s decision not to bring criminal charges against Hillary Clinton continued to prevail financial markets in Monday’s European session. Yesterday’s announcement by the FBI that they are closing their investigation into Clinton’s use of a private email server has given a last-minute boost to the Democrats’ campaign. This in turn has led to a relief rally ahead of Tuesday’s presidential election in the US. The dollar hit a one-week high of 104.62 yen [..]

Asian Session – Risk appetite boosts dollar above 104 yen as FBI clears Clinton of criminal charges

Posted on November 7, 2016 at 7:42 am GMT

There was a relief rally in the markets on Monday as the FBI released a letter on Sunday reaffirming that Hillary Clinton was clear from criminal charges regarding her email scandal. This news comes on the eve of the US elections and boosted the dollar against the safe haven yen as risk appetite was boosted. Last week the FBI reopened the Clinton email investigation after some new evidence appeared related to her use of a private e-mail server. After reviewing [..]

European Session – Payrolls report fails to move dollar; Loonie hits 8-month low on oil, mixed data

Posted on November 4, 2016 at 4:04 pm GMT

A solid gain in US jobs in October was unable to lift the US dollar in today’s European session as markets remain gripped by the American presidential race as polling day draws nearer. Uncertainty over the outcome of the US election next Tuesday kept most major currencies within their recent trading range despite a relatively a busy day for economic data, the highlight of which was the non-farm payrolls report. US non-farm payrolls rose by 161k in October, slightly below [..]

European Session – Sterling soars above $1.24 on UK court Brexit ruling and less dovish BoE

Posted on November 3, 2016 at 4:30 pm GMT

The British pound was one of the best performing currencies in Thursday’s European session as a UK High Court ruled the government could not trigger Article 50 without Parliament’s permission. The US dollar meanwhile bounced off from 4-week lows against the yen as political worries eased slightly, but its gains were capped from weak US data. A narrowing lead for Hillary Clinton in the polls continued to pressure the dollar today but the greenback managed to pare some of its [..]

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