Daily Market Analysis

European Session – Dollar extends gains on firmer rate hike expectations following Fed’s Stanley comments

Posted on August 30, 2016 at 2:48 pm GMT

The US dollar continued its post – Jackson Hole rally after receiving another boost from comments by Fed Vice Chair Stanley Fischer today who firmed rate hike expectations. Speaking on Bloomberg TV today, the US central bank official mostly reiterated his views from Friday when both he and Fed Chair Janet Yellen suggested that the case for a rate increase was strengthening. Markets are now waiting for the next big event on Friday, which is nonfarm payrolls data. The data [..]

Asian Session – Dollar rebounds back above 102 yen despite strong Japanese data

Posted on August 30, 2016 at 8:34 am GMT

The dollar rose marginally against major currencies in Asian trading on Tuesday as investors eyed Friday’s non-farm payrolls report. The August jobs report out of the US will be closely watched following the recent hawkish tones of Fed officials, including Fed Chair Janet Yellen herself. The greenback extended its declines at the start of today’s Asian session to hit a low of 101.74 against the yen before reversing to climb to around 102.40 yen in late session. The euro and [..]

European Session – Dollar firms on Fed policy outlook after hawkish Yellen

Posted on August 29, 2016 at 3:25 pm GMT

The US dollar remained firm as investors continue to digest comments from Fed Chair Janet Yellen as well as other Fed officials at the Jackson Hole summit over the weekend. The key message appeared to be that a policy tightening this year was in play. More US economic data will likely determine if the Fed will hike rates as soon as the September policy meeting. Friday’s nonfarm payrolls will definitely play a big role in the Fed’s policy decision but [..]

Asian Session – Dollar extends gains on Yellen rate comments

Posted on August 29, 2016 at 8:45 am GMT

The US dollar extended its gains in Asian trading on Monday as markets increased their expectations that the Federal Reserve will likely raise interest rates later this year. Speaking at the Jackson Hole Symposium on Friday, Fed Chair Janet Yellen reiterated the hawkish views of other Fed officials in recent days. Yellen said the US economy is “nearing the Federal Reserve’s statutory goals of maximum employment and price stability”. She added that the “case for an increase in the federal [..]

European Session – Dollar makes limited gains as Yellen fails to give clear signals on rate hikes

Posted on August 26, 2016 at 3:30 pm GMT

The major currencies were without direction during most of the European session as investors took on a cautious tone ahead of Fed Chair Janet Yellen’s keynote speech at the Jackson Hole Symposium today in Wyoming, USA. The US dollar was consolidating with limited movement against major counterparts before Yellen’s speech and saw limited reaction to US data. A second estimate of US GDP released today showed US economic growth was a bit more sluggish than initially thought in the second [..]

Asian Session – Dollar softer ahead of Yellen; Yen unmoved by weak Japan inflation data

Posted on August 26, 2016 at 8:32 am GMT

The US dollar fell against most major currencies on Friday as traders remained wary ahead of Fed Chair Janet Yellen’s much anticipated speech later in the day at the Jackson Hole economic symposium in Wyoming, United States. The dollar index was down 0.2% on the day as the US currency lost ground against most majors but it was flat against the yen. The Japanese currency came under some pressure after data out today showed inflation in Japan fell deeper into [..]

European Session – Dollar firms on upbeat jobless claims and durable goods; caution ahead of Yellen’s Jackson Hole speech

Posted on August 25, 2016 at 2:33 pm GMT

Currency markets began to take on a risk-off mood ahead of Fed Chair Janet Yellen’s speech on Friday at the Jackson Hole Federal Reserve symposium. Risk averse currencies like the Australian and Canadian dollars took a hit, as did sterling. Gold dropped due to a firmer dollar and on expectations of a less dovish Yellen tomorrow. The euro shrugged off weak German IFO data and quickly bounced against the dollar to recover most of Wednesday’s losses although it still remains [..]

Asian Session – Dollar stuck in range as investors look to Yellen for direction

Posted on August 25, 2016 at 8:03 am GMT

Major currencies were range-bound in Asian trading on Thursday as thin summer volumes and the lack of direction kept investors on the sidelines. The US dollar has been stuck in a tight range against the yen for the past week as traders remain split on the likelihood of a rate hike by the Fed before the end of the year. The dollar was flat around 100.40 yen, slightly down from its Asian session high of 100.61 yen. All eyes will [..]

European Session – Sterling rallies to 3-week high, oil falls after EIA data show rise in inventories

Posted on August 24, 2016 at 3:05 pm GMT

Sterling was one of the best performing major currencies today as it rose to a three-week high against the dollar, above the key $1.32 level to $1.3272. The pound has had a good week so far, having risen 1.3% versus the greenback, following a 1.2% gain last week. Recent upbeat UK data has been the main driver behind the British currency’s strength. Post-Brexit economic data have been coming in better-than-expected. On Tuesday, a CBI report showed orders for British manufacturing [..]

Asian Session – Dollar edges higher on strong housing data but trading cautious ahead of Yellen

Posted on August 24, 2016 at 8:20 am GMT

Currency markets were stuck in a summer lull as the absence of any major data and cautiousness ahead of Yellen’s speech later this week kept trading subdued in Wednesday’s Asian session. The dollar was lifted from stronger-than-expected new home sales figures out of the US yesterday with investors shrugging off a slightly weaker-than-expected flash manufacturing PMI reading. The greenback spiked below 100 yen several times before edging higher after the housing data. It was last trading around 100.30 yen in [..]

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