Daily Market Analysis

Asian Session – Euro jumps on ECB taper story; pound, gold struggle to find support

Posted on October 5, 2016 at 7:50 am GMT

The euro made a comeback against a resurgent US dollar following a story from Bloomberg that the European Central Bank was considering gradually reducing its bond purchases before the program ends. The British pound and gold on the other hand were struggling to find support as they plunged to fresh lows. The US dollar was doing well generally – with the possible exception of the euro – after Richmond Fed President Jeffrey Lacker sounded a hawkish note. Lacker said there [..]

European Session – Pound hits new 31-year low while dollar extends gains

Posted on October 4, 2016 at 3:04 pm GMT

The British pound continued to come under pressure in European trading on Tuesday, hitting the lowest since June 1985 on mounting fears that the UK is heading for a ‘hard Brexit’. Sterling tumbled to a fresh 31-year low of 1.2735 dollars in afternoon European trading, extending yesterday’s sharp losses. The weaker pound boosted shares in London as a more competitive exchange rate appeared to outweigh concerns about British firms losing access to the single market. The FTSE 100 index soared [..]

Asian Session – Dollar rebounds on strong ISM; pound makes new low while RBA holds rates

Posted on October 4, 2016 at 7:19 am GMT

The US dollar was up during Tuesday’s Asian session as it managed to push euro / dollar below 1.12 and dollar / yen rose above 102 on follow-through buying after the previous day’s strong ISM manufacturing PMI for the United States. ISM manufacturing PMI rose to 51.5 from the previous month’s surprising 49.4 reading, which had left the index in contraction territory. The report contained a particularly strong new orders component, while the employment and prices sub-components were also better-than-expected. [..]

European Session – Hard Brexit fears drive sterling to fresh 3-month low

Posted on October 3, 2016 at 2:44 pm GMT

Sterling looks set to start the third quarter on a weak footing as it plummets 1% on fresh concerns that the UK could be heading for a ‘hard Brexit’. Fears were heightened after the British PM, Theresa May, outlined for the first time the expected timetable of when the government would trigger Article 50. Speaking at the Conservative party conference over the weekend, May signalled that Britain would seek to regain full control of immigration and withdraw from the jurisdiction [..]

Asian Session – Pound down in thin trading due to Chinese holidays

Posted on October 3, 2016 at 6:56 am GMT

There were few major moves during today’s Asian trading as holidays in China and a lack of important developments created little volatility. Dollar / yen traded in a narrow range between 101.25 and 101.50, following unsuccessful attempts by the pair to break below 100 the previous couple of weeks. In economic data, the Bank of Japan’s quarterly Tankan survey of business confidence came in lower-than-expected for large manufacturers, but was steady compared to the previous quarter. The Big Manufacturers’ index [..]

European Session – Euro jumps back above $1.12 on reports of reduced fine for Deutsche Bank

Posted on September 30, 2016 at 3:04 pm GMT

Deutsche Bank’s troubles continued to keep markets on edge in Friday’s European session, while signs of slowing consumer spending in the US weighed on the dollar. Concerns about the health of Deutsche Bank intensified today following news that some hedge funds have reduced their exposure with the German lender. The euro slid for most of today’s European session to hit a 1½-week low of 1.1153 dollars. However, the single currency sharply reversed upwards after some reports suggested that the Bank’s [..]

Asian Session – Markets on risk-off on final day of the quarter

Posted on September 30, 2016 at 6:54 am GMT

Worries about the fate of Deutsche Bank, Germany’s largest lender as well as other concerns about US elections and a possible December rate hike by the Fed led to some profit-taking in risk assets on Friday. Asian stocks, influenced by losses on Wall Street overnight, also fell with Tokyo’s Nikkei and Hong-Kong’s Hang Seng index losing more than a percent. The yen is traditionally a safe haven at times of market turbulence but yen moves also seemed to be influenced [..]

European Session – Yen slides 1% as oil deal boosts risk-on mood; dollar up on solid US data

Posted on September 29, 2016 at 2:40 pm GMT

The oil deal-driven risk-on sentiment ebbed slightly in late European trading on Thursday but the safe-haven yen continued to fall out of favour as it slid by around 1% against most major currencies. Yesterday’s surprise announcement by OPEC that a deal had been struck to limit output appears to have had more of an effect in boosting dollar/yen than statements from either the Fed or the Bank of Japan have in recent weeks. The dollar has risen sharply today to [..]

Asian Session – OPEC deal to cut output boosts commodity currencies, risk appetite

Posted on September 29, 2016 at 6:47 am GMT

During today’s Asian session the market was still dealing with the aftermath of yesterday’s surprise decision by OPEC to limit its oil production. The market was at best expecting a deal to freeze output and there were serious reservations that OPEC would achieve even that as many meetings in the past ended in disarray and without any agreement. Therefore the fact there was an agreement and the additional aspect that it involved a production cut (even if it was a [..]

European Session – Euro see-saws on Deutsche Bank rumours; Dollar unfazed by Fed, data

Posted on September 28, 2016 at 3:06 pm GMT

The euro was under focus for much of today’s European session as uncertainty over the fate of Germany’s largest lender caused the currency to fluctuate. Meanwhile, the dollar held steady against the yen as traders awaited Fed Chair Janet Yellen’s semi-annual testimony in Congress. The future of Deutsche Bank was the main theme in European markets on Wednesday amid rumours that the German government is preparing a rescue plan for the troubled bank, which has been hit by a mega-large [..]

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