Daily Market Analysis

European Session – pound falls on inflation miss, dollar recovers after dovish Fed speech

Posted on September 13, 2016 at 2:31 pm GMT

The pound dropped on softer-than-expected inflation numbers out of the UK, while the US dollar staged a recovery from a dovish speech from a Fed official the previous day. The euro was not particularly moved by a weak ZEW German investor sentiment survey, while the Aussie failed to benefit from strong Chinese data released earlier during the Asian session. Today’s trading was dominated by the recovery in the US dollar, which was hurt the previous day following a dovish speech [..]

Asian Session – Gold rises as dovish Brainard suggests rate hike delay

Posted on September 13, 2016 at 5:51 am GMT

The US dollar slipped as the rate rise odds fell after a speech by Federal Reserve Governor Lael Brainard at the Chicago Council on Global Affairs on Monday. This was the last speech from a Fed speaker before the US central bank’s blackout period ahead of the FOMC policy decision next week. Brainard’s speech had a dovish tone as she urged prudence and saw less urgency in raising US interest rates. The dollar initially tumbled on Brainard’s comments and equities [..]

Yen rallies on risk aversion; Fed’s Brainard speech expected for clues

Posted on September 12, 2016 at 2:31 pm GMT

The Japanese yen put in a strong performance on Monday as falling stock markets and rising bond yields caused investors to buy the safe-haven currency. The yen gained around 1% against most majors since the start of Monday’s Asian trading. Dollar / yen dropped below 102 to 101.92, euro / yen dropped to 114.34 and pound / yen fell back to 135. The market’s turbulence was apparently linked to fears that central banks such as the European Central Bank and [..]

Asian Session – Yen outperforms on safe haven buying; aussie hit hard by risk off mood

Posted on September 12, 2016 at 7:05 am GMT

The safe-haven yen benefited from risk aversion that was evident in all markets. There was a broad selloff in Asian equity markets which dampened invertors’ risk appetite and was the main driver behind the yen’s strength. The dollar started the new trading week on the back foot and opened in Asia with a gap lower against the Japanese currency at 102.54 yen. This led to the greenback trimming some gains made on Friday when it was driven higher by hawkish comments [..]

European Session – Dollar edges higher against yen on Fed’s Rosengren’s hawkish comments

Posted on September 9, 2016 at 3:04 pm GMT

The US dollar was broadly stronger by the end of the European session, helping reverse the euro’s post-ECB gains. The ECB’s inaction on Thursday pushed the euro higher but the bounce did not have staying power and it soon reversed as the markets turned their focus on the December ECB meeting for further stimulus. The euro’s rise above the key $1.13 level yesterday turned lower soon after and the currency remained below this key level today, falling to as low [..]

Asian Session – Euro extends gains after ECB disappoints; Oil prices hold at 2-week highs

Posted on September 9, 2016 at 8:35 am GMT

The ECB’s less dovish tone yesterday continued to weigh on risk appetite in financial markets on Friday, while reports that North Korea had carried out another nuclear test also hit sentiment in Asian trading today. The euro jumped to a two-week high of 1.1326 dollars after yesterday’s decision by the European Central Bank to keep monetary policy unchanged. But it later pulled back before reversing upwards again to climb to 1.1284 dollars in Friday’s Asian session. Today’s gains were capped [..]

European Session – Euro fluctuates due to ECB; oil surges as inventories fall

Posted on September 8, 2016 at 3:22 pm GMT

In the absence of any major economic data releases during the European session, the highlight of the day was the ECB meeting and press conference by ECB Chief Mario Draghi. The euro was trading firm ahead of the decision but when the ECB announced that it was maintaining its current monetary policy, the single currency jumped higher. The euro rose above the key 1.1300 level as Draghi spoke and reached a fresh September high. As the dust settled after the [..]

Asian Session – Yen holds onto gains after GDP revised up, BoJ Deputy speech

Posted on September 8, 2016 at 8:38 am GMT

The yen held on to its gains on Thursday following the dollar’s post-ISM sell-off as an upward revision to Japanese GDP in the second quarter provided further support to the yen. There was muted reaction though to a speech by the Bank of Japan’s Deputy Governor, Hiroshi Nakaso, who signalled that rates could be cut deeper into negative territory. Japan’s economy expanded by an annualized rate of 0.7% in the second quarter of the year, up from the preliminary estimate [..]

European Session – Loonie falls after BOC holds rates and Canadian business survey disappoints

Posted on September 7, 2016 at 3:03 pm GMT

The euro consolidated against the dollar during today’s European session, after Tuesday’s impressive rally, as further gains were limited ahead of Thursday’s European Central Bank policy meeting. Some analysts believe that the ECB might be pressured to come up with a decision on further stimulus measures. The euro touched session lows of 1.1228 and highs of 1.1271 against the dollar. The pound dipped to a new intra-day low of 1.3350 dollars just before Mark Carney, Governor of the Bank of [..]

Asian Session – Dollar/yen extends slide on weak US data; Kiwi rallies to 16-month high

Posted on September 7, 2016 at 8:40 am GMT

Markets were back in risk-on mood in Asian trading on Wednesday as investors cut back expectations of a Fed rate hike this month following yesterday’s weak US data. Non-manufacturing activity in the US grew at the slowest pace in 6½-years in August according to the ISM index. The dollar plummeted after the data as the poor ISM reading means the Fed is unlikely to raise rates at its policy meeting later this month. The greenback fell to a one-week low [..]

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