Daily Market Analysis

European Session – Pound underperforms in muted trading weighed by ‘hard’ Brexit fears

Posted on September 20, 2016 at 2:53 pm GMT

The British pound underperformed other major currencies in Tuesday’s European session, while uncertainty ahead of the US Federal Reserve and Bank of Japan policy decisions tomorrow kept trading muted. Central bank policy was once again the dominant market theme as the absence of any other headlines meant investors’ focus was on the Fed and the BoJ, which both start their two-day policy meetings today and will announce their decisions tomorrow. The dollar was stuck in a tight range against the [..]

Asian Session – Nervousness ahead of BoJ and Fed keeping markets subdued

Posted on September 20, 2016 at 5:36 am GMT

Markets were subdued as caution set in ahead of the highly-anticipated policy decisions from the Federal Reserve and the Bank of Japan following a two-day meeting that concludes on Wednesday. The yen was weaker today as the Tokyo equity markets were up while investors count down to the BoJ decision and there is optimism that the Bank will take some action at this meeting. Unlike the Fed, a move on rates by the BoJ is expected and the odds for [..]

European Session – Dollar drifts lower but aussie and kiwi shine as oil rallies

Posted on September 19, 2016 at 3:13 pm GMT

Currency markets remained subdued in today’s European session as traders took a cautious line ahead of this week’s Fed and Bank of Japan meetings and in the absence of major data releases. The dollar continued to slip against the yen, breaking below the key 102 level, while a rebound in oil prices boosted equities and commodity-linked currencies. The dollar index was down 0.4% in late European session at 95.70 as traders bet that the Fed will keep rates on hold [..]

Asian Session – Oil rises on output freeze hopes; aussie outperforms after China data

Posted on September 19, 2016 at 5:27 am GMT

It was a fairly quiet Asian session as Tokyo was on holiday today and the economic calendar was light. The yen saw some strength as it was supported by the demand for safe haven assets. Investors are being cautious ahead of key risk events this week, with the Federal Reserve and Bank of Japan holding policy meetings. The dollar/yen pair edged lower to 101.98 yen, trimming its gains made on Friday after US inflation data. CPI beat expectations to rise 0.2% [..]

European Session – Dollar rallies on strong inflation numbers

Posted on September 16, 2016 at 2:25 pm GMT

The US dollar posted some strong gains today, following the release of data showing price pressures building up in the US economy. The yen also posted some gains versus the pound and the euro, as it traded below the 134 and 114 levels respectively. Euro / dollar fell to its lowest since September 6, falling below the 1.12 level to 1.1166. Dollar / yen did not rise as much, with the dollar retaking the 102 handle to trade around 102.15. [..]

Asian Session – Dollar broadly weaker as markets digest soft US data

Posted on September 16, 2016 at 5:20 am GMT

US data out on Thursday changed expectations for a Fed rate hike and dampened sentiment for the dollar. A batch of disappointing economic data out of the world’s largest economy would likely lower the odds of a rate hike by the US central bank at its policy meeting next week. Risk aversion in Asian markets today helped the yen firm up although volumes were low as many markets in Asia (such as China, Hong Kong and Malaysia) were shut for [..]

European Session – weak data fails to dent US dollar; Bank of England holds as expected

Posted on September 15, 2016 at 2:24 pm GMT

The US dollar proved resilient in the face of some worse-than-expected economic news whereas the Bank of England’s rate-setting meeting confirmed expectations that the Bank would hold off from extra stimulus for now. Retail sales in the United States were broadly weaker in August, as the headline measure contracted by 0.3% whereas the previous month’s rate was revised slightly higher to 0.1%. The retail sales control measure, which excludes certain volatile spending categories and which is closely related to the [..]

Asian Session – Aussie falls after Australian jobs data; pound steady ahead of BOE

Posted on September 15, 2016 at 5:35 am GMT

The Australian employment report was the main data in focus during Thursday’s Asian session. It was a mixed report showing that the economy lost 3,900 jobs in August, compared with a revised gain of 25,300 in July (previously 26,200). The figure was contrary to economists’ expectations for a gain of 15,000 jobs. The Aussie initially dropped after the data to touch a session low of $0.7445 before steadying to $0.7468 as investors were satisfied by the fact that the unemployment [..]

European Session – Yen bounces back while pound falls despite decent UK employment numbers

Posted on September 14, 2016 at 2:39 pm GMT

The yen bounced back, while the pound resumed its fall despite a positive employment report during Wednesday’s European session. Euro / dollar continued to be flat due to an absence of major data or risk events for the world’s two largest economies; the Eurozone and the United States. Dollar / yen dropped back below 103 to 102.70 as doubts emerged concerning the validity of a report published in Japan’s major business newspaper about the Bank of Japan pursuing negative rates [..]

Asian Session – Yen adds to losses on speculation of deeper negative rates

Posted on September 14, 2016 at 5:35 am GMT

The yen was one of the worst performing major currencies during the Asian session on Wednesday after the currency weakened in reaction to a Nikkei newspaper report that the Bank of Japan may cut interest rates deeper into negative territory. The Japanese currency added to yesterday’s losses when it weakened 0.7% and it softened 0.6% in Asian trading today. The US dollar rose to a session high of 103.18 yen, marking a fresh one-week high. The diverging monetary policies of [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms