Daily Market Analysis

European Session – Dollar tumbles on weakest ISM non manufacturing PMI in six years

Posted on September 6, 2016 at 2:49 pm GMT

Today’s European Session was mostly quiet due to a light economic calendar, leaving major currency pairs range bound. In the US session, the ISM non-manufacturing PMI index was released, and the lower-than-expected number negatively impacted the dollar. In the day’s economic data, second quarter GDP numbers for the Eurozone were not revised as they stayed at 0.3% q/q and 1.6% y/y. Earlier, industrial orders out of Germany disappointed by coming in at 0.2% m/m, versus 0.5% expected. The ECB meeting on [..]

Asian Session – Aussie up as RBA holds rates; crude oil prices steady after Russia-Saudi agreement

Posted on September 6, 2016 at 8:21 am GMT

The Australian dollar was one of the biggest gainers in today’s Asian session as the Reserve Bank of Australia kept interest rates unchanged at 1.5% at its September policy meeting. The decision was widely expected but the absence of any fresh signals to cut rates in the near future helped the aussie hold on to the gains it made ahead of the announcement. The aussie advanced to 0.7636 versus the US dollar just before the RBA’s decision before pulling back [..]

European Session – Euro pressured after Eurozone PMI revised down; Oil up sharply on Saudi-Russia deal

Posted on September 5, 2016 at 2:51 pm GMT

Services PMIs for the UK and Eurozone were the highlight of today’s European Session as there was no data out of the US today where markets are closed for Labor Day. The euro came under pressure from a surprise downward revision to the final reading of the Eurozone’s services PMI, while the pound was boosted by a stronger-than-expected recovery in UK services activity in August. The dollar meanwhile continued to drift lower against the yen, hitting an intra-day low of [..]

Asian Session – Dollar eases but yen firms as Kuroda fails to give clear signals

Posted on September 5, 2016 at 8:25 am GMT

The US dollar was softer on Monday as it pulled away from Friday’s highs when it rebounded sharply from the brief tumble induced by the weaker-than-expected US jobs report. The dollar dropped below 103 yen after the August non-farm payrolls rose less than forecast, diminishing the odds of a September rate hike by the Fed. However, the figure was not so weak as to rule out a rate rise before the end of the year and the dollar recovered to [..]

European Session – Dollar recovers NFP losses as rate hike this year still expected

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

Friday’s European session was mostly quiet due to a light calendar but also because markets were waiting on the sidelines for the first key data of the month– the US nonfarm payrolls report – after a quiet summer. The US dollar initially fell after the all-important data showed fewer jobs were added to the US economy than expected in August. Markets reacted negatively to the headline number as they thought it would make it potentially less likely that the Federal [..]

Asian Session – Dollar holds losses after post-ISM data tumble; focus turns to nonfarm payrolls

Posted on September 2, 2016 at 7:59 am GMT

The US dollar held onto losses made after the disappointing ISM manufacturing PMI data on Thursday which was a setback for those hoping for a rate hike by the Federal Reserve soon. The surprise drop in the ISM index showed that factory activity in the US fell in August into contraction territory for the first time since February. This does not bode well for the US economic growth outlook. The dollar did attempt to recover some of yesterday’s losses early [..]

European Session – Sterling jumps on strong manufacturing PMI while dollar reverses on weak ISM manufacturing data

Posted on September 1, 2016 at 3:01 pm GMT

US jobless claims data today helped the dollar climb to a fresh one-month high but its gains were capped just below the key 104 yen level after the greenback reversed back down on disappointing ISM manufacturing data. The initial jobless claims report showed the number of Americans seeking unemployment benefits last week, rose less – than – expected. Any upbeat data, especially on the job market, will be closely watched by the Federal Reserve as it could push the US [..]

Asian Session – Dollar softer on profit taking; Strong China PMI lifts commodities

Posted on September 1, 2016 at 8:02 am GMT

The US dollar eased off yesterday’s one-month highs against the yen in today’s Asian session as investors took profits from a week-long rally. The greenback was boosted on Wednesday from strong ADP employment and housing data and the focus now moves to the ISM manufacturing PMI due later today. The dollar peaked at 103.52 yen yesterday and was trading slightly lower at around 103.30 yen in today’s Asian session. Against other currencies, the greenback was mixed as the Australian and [..]

European Session – Dollar boosted by strong ADP jobs data; loonie falls after Canada GDP and oil inventories

Posted on August 31, 2016 at 3:03 pm GMT

The euro slipped to a new 3-week low of $1.1122 against the dollar after being weighed down by disappointing Eurozone inflation data. The August flash estimate remained stable at 0.2% year-on-year, which was below estimates for an increase to 0.3%. Unemployment for the region was also somewhat disappointing at 10.1% versus 10.0% expected but remained unchanged. These numbers will likely be taken into consideration by the ECB at their monetary policy meeting next week. The Canadian dollar was a notable [..]

Asian Session – Dollar breaks above 103 yen; BoJ comments add to broader yen weakness

Posted on August 31, 2016 at 8:09 am GMT

Growing expectations that the Fed is poised to raise rates at least once this year lifted the dollar to a one-month high against the yen today. The dollar broke above the 103 level on Monday for the first time since the end of July and extended its gains to 103.27 during today’s Asian session. Fed Vice Chair Stanley Fischer yesterday reiterated Yellen’s views when she spoke in Jackson Hole last Friday that the US labor market is nearing full employment [..]

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