Daily Market Analysis

European Session – Dollar shrugs off soft US inflation to recover back above 100 yen on Dudley’s rate hike comments

Posted on August 16, 2016 at 2:52 pm GMT

The euro staged a strong rally today to briefly reach the $1.13 level in European trading with the help of a broadly weaker US dollar. A mostly risk off environment in the markets today supported the safe haven yen, thereby pushing the dollar below the key 100 yen level. The greenback initially fell to a more than seven-week low of 99.53 yen after soft US inflation data but it soon reversed losses to climb back above the key 100 yen [..]

Asian Session – Dollar slides towards 100 yen; Sterling firms ahead of inflation data

Posted on August 16, 2016 at 8:46 am GMT

The US dollar resumed its downtrend against the yen on Tuesday as recent soft economic data continued to dampen expectations of a Fed rate hike. Traders were also cautious ahead of the latest US inflation numbers due later in the day, while comments from San Francisco Fed President John Williams also weighed on the greenback. Writing in a publication by the San Francisco Fed, Williams highlighted the limitations of monetary policy when there is little room to cut rates lower [..]

European Session – Dollar tumbles against yen on soft US retail sales data; oil set to end week higher

Posted on August 12, 2016 at 2:40 pm GMT

Major currency pairs were mostly consolidating the previous day’s moves in the early part of today’s European session until the release of US data which resulted in some substantial moves. The dollar was overall underperforming all week and the release of disappointing US retail sales figures today added to its losses especially against the yen. The highlight of the day was the US retail sales data which was unexpectedly unchanged in July. A 0.4% m/m increase was forecast. Meanwhile, June’s figure was upwardly revised to show [..]

Asian Session – Dollar extends rally driven by Fed’s Williams support for rate hikes; oil higher on Saudi oil Minister’s comments

Posted on August 12, 2016 at 8:48 am GMT

The US dollar extended gains versus the yen in Asian trading on Friday after being lifted late on Thursday by comments from San Francisco Fed President John Williams. The US central bank official said in an interview with the Washington Post that he supported the view that there should be more Fed rate hikes this year as labour market conditions improve in the US economy and inflation is likely heading higher. The dollar reacted positively to the expectation of another [..]

European Session – Sterling dips to 1-month low; oil rallies on softer dollar

Posted on August 11, 2016 at 3:16 pm GMT

Currency markets were relatively subdued during the European session due to a lack of key economic data and also due to light trading during the summer holidays. Consequently, there was no clear direction in the markets today. The euro started off the session on a soft note against the dollar, falling to a low of $1.1136 before bouncing back up to beat the early session highs. The pair reached a high of $1.1173 as the greenback reversed earlier strength. Despite [..]

Asian Session – Kiwi rallies after RBNZ disappoints with size of rate cut

Posted on August 11, 2016 at 8:23 am GMT

The New Zealand dollar extended its rally today as the expected rate cut by the Reserve Bank of New Zealand failed to halt the kiwi bulls. The RBNZ announced a 25bps reduction in its official cash rate to 2.0% earlier today, the second cut this year. In his statement, the Governor Graeme Wheeler said “further policy easing will be required” to ensure that inflation rises to the target range, warning that a sustained weakness in headline inflation risks dragging down [..]

European Session – Aussie and kiwi surge as dollar slumps to one-week low

Posted on August 10, 2016 at 2:59 pm GMT

Risk sentiment remained subdued in European trading on Wednesday as the dollar continued to face downward pressure on renewed doubts about the likelihood of a Fed rate hike this year. The dollar index, which measures the greenback against a basket of currencies, fell to a one-week low of 95.44 in late European session as traders bet that the Fed will likely wait for stronger evidence of rising inflationary pressures before raising rates given the muted pace of economic growth. The [..]

Asian Session – Yen rises on weaker dollar and strong Japanese data

Posted on August 10, 2016 at 8:34 am GMT

The yen firmed against major currencies on Wednesday as fading risk appetite and weak US data weighed on the dollar. Hourly output per worker in the US fell for the third straight quarter, raising concerns about the prospect of future GDP growth in the US. The dollar slipped below the 102 level against the yen after the data and drifted further lower in Asian trading today to stand at 101.40 yen in late session. Further aiding the yen today were [..]

European session – Pound hits 1-month low and dollar also falls back, but equities shine

Posted on August 9, 2016 at 3:14 pm GMT

Global equities were the main winners today from the risk-on mood that has prevailed since Friday’s solid US jobs report as currency markets suffered in lacklustre trading. The dollar fell back in today’s European session and the pound also came under pressure, while the yen firmed. European equities were heading for a fourth day of gains and US shares also opened in positive territory on Tuesday. The S&P 500 was once again flirting with record highs at 2185.6 in late [..]

Asian Session – Dollar flat in thin summer trade; Pound slips on BoE comments

Posted on August 9, 2016 at 8:14 am GMT

The dollar was flat in Asian trading on Tuesday as major currencies were struggling for direction in thin summer trade. The greenback was unable to advance beyond 102.65 against the yen yesterday and was stuck around 102.35 yen for much of today’s Asian session. The euro was also steady and hovered around 1.1080 dollars for a second day. There was little reaction to mixed German trade data out earlier. German exports rose by a less-than-expected 0.3% in June, but imports [..]

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