Daily Market Analysis

European Session – US dollar mixed as euro braces for ECB; Loonie firms on BoC

Posted on October 19, 2016 at 2:54 pm GMT

The US dollar was mixed – stronger versus the euro but down against the yen during today’s European trading. The weakness in the euro was pronounced versus other majors, as investors and traders perhaps expected some promises of stimulus extension by the European Central Bank when the bank’s Governing Council meets next tomorrow in Frankfurt. Euro / yen was near a 3-week low as it traded down to 113.10. The yen was strong while European stocks drifted amid weak earnings [..]

Asian session – Chinese growth reassures markets; yen gains while dollar is mixed

Posted on October 19, 2016 at 7:18 am GMT

Chinese GDP met expectations and helped to support risk sentiment while the US dollar was mixed versus its peers in today’s Asian trading. The news that China’s GDP growth was in line with expectations was the main news development of the session. Chinese GDP for the third quarter grew by 6.7% compared to the respective year ago period. Industrial output for September missed estimates however, while retail sales were slightly higher-than-anticipated. Overall the data showed that China was on a [..]

European Session – Pound boosted by strong inflation data but dollar mixed

Posted on October 18, 2016 at 3:07 pm GMT

Today’s risk-on sentiment carried forward into European trading, with commodity currencies extending their gains. The euro suffered a dip due to the expiry of options, while sterling was lifted by stronger-than-expected UK inflation data. Annual inflation in the UK rose at the fastest pace in nearly two years in September, increasing to 1.0% from 0.6% in August. Expectations were for CPI to rise to 0.9%. Core inflation also beat estimates, rising to 1.5% in September versus expectations of 1.4% and [..]

Asian session – Commodity currencies rise on positive risk; US dollar steadies

Posted on October 18, 2016 at 7:14 am GMT

The US dollar steadied while there was some positive risk sentiment that benefited Asian stocks and currencies such as the Australian, Canadian and New Zealand dollars. Sterling mostly held the previous day’s gains. In the day’s key developments, the Reserve Bank of Australia’s new Governor Philip Lowe emphasized the role of inflation expectations, as persistently low inflation could become engrained in consumers’ long-term outlook. This heightened the focus on next week’s quarterly inflation numbers, as the RBA could move to [..]

European Session – Euro tests $1.10 as dollar slips on profit taking

Posted on October 17, 2016 at 3:17 pm GMT

The US dollar faced some profit-taking during today’s European session, as the euro climbed away from its overnight lows and the greenback was struggling to hold on to the 104 level against the yen. According to news reports, there were hopes that the European Central Bank will announce something at its policy meeting on Thursday that will benefit the euro. The ECB’s asset purchase program is set to expire in March 2017 and a decision needs to be taken on [..]

Asian session – Dollar keeps most of last week’s gains as focus switches to ECB this week

Posted on October 17, 2016 at 7:59 am GMT

The US dollar kept most of its gains despite some attempts of profit-taking as the market seemed to brace for a rate hike in December. The dollar index reached its highest in 7 months at 98.15 right after the beginning of Asian trading but subsequently fell below 98 to 97.99. Fed Chair Janet Yellen said on Friday that it would be best to let the US economy run “hot” for a while so as to repair the damage that took place during [..]

European Session – Mixed US data caps dollar’s advance; Carney remarks support pound

Posted on October 14, 2016 at 3:43 pm GMT

Risk appetite extended into Friday’s European session after strong Chinese inflation data had boosted sentiment in Asian trade. The US dollar looks set the end the week on a high note with the dollar index making gains of more than 1% over the week. However, the dollar’s gains were capped today following some mixed data out of the US. Retail sales rose by 0.6% month-on-month in September, in line with estimates and the prior month’s figure was revised up from -0.3% [..]

Asian Session – US dollar gains ahead of retail sales, Yellen

Posted on October 14, 2016 at 8:53 am GMT

The US dollar managed to strengthen against its peers during today’s Asian session, on anticipation that upcoming data as well as a speech by Fed Chair Janet Yellen will reinforce the case for a December rate hike. Dollar / yen climbed above the 104 level once more to 104.05, while euro / dollar fell back to 1.1021. During the previous day, the euro had managed to rebound to around 1.1060 after briefly falling just below the 1.10 mark. Sterling also [..]

European Session – Dollar extends gains but sterling retreats from highs

Posted on October 13, 2016 at 1:09 pm GMT

The US dollar resumed its uptrend in European trading on Wednesday as traders made a bullish bet ahead of the release of the FOMC minutes of the Fed’s September meeting later in the day. The odds of a Fed rate hike have been strengthening over the past week following some solid US data. The dollar index, which measures the US currency against those of its major trading partners, hit a fresh 7-month high of 97.97, sending gold to a three-day [..]

European Session – Dollar remains subdued while Brexit legal challenge caps sterling

Posted on October 13, 2016 at 1:06 pm GMT

The market mood remained risk-off in European trading on Thursday as disappointing trade numbers out of China earlier in the day dampened the outlook for the world’s second largest economy. Meanwhile, expectations that the Fed is on course to raise rates in December weighed on global equities. The September FOMC minutes published yesterday indicated that the decision not to raise rates in September was a close call, and given the recent strong set of data for the US, the Fed [..]

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