Daily Market Analysis

European Session – Sterling pressured after discouraging CBI survey; weak oil prices weigh on loonie

Posted on July 25, 2016 at 2:46 pm GMT

There was little real direction in the currency markets during the European Session as a light economic calendar today and big central bank meetings later this week resulted in little activity. Investors were being cautious ahead of the scheduled policy meetings of the Fed and the Bank of Japan on Wednesday and on Friday respectively. During the European session the pound fell against the dollar from a session high of $1.3163 to touch a session low of $1.3093 following a gloomy CBI [..]

Asian Session – Markets steady ahead of key risk events; commodities weighed by strong dollar

Posted on July 25, 2016 at 8:08 am GMT

Market sentiment was mixed on Monday as there was still some risk appetite prevailing from last week but a light calendar day and cautiousness ahead of key central bank meetings kept traders on edge. A statement by G20 finance ministers over the weekend saying that they will use “all policy tools” to achieve stronger global economic growth helped support risk sentiment at the start of Asian trading on Monday. The dollar got off to a strong footing, climbing to 106.72 [..]

European Session – Pound tumbles after PMI points to contraction in economic activity

Posted on July 22, 2016 at 2:44 pm GMT

The main news item in today’s European session was the release of the Markit PMI business surveys for a number of developed countries. The Eurozone PMI beat expectations on the composite level, as it fell to only 52.9 compared to 52.5 expected by economists. The previous month’s figure was 53.1. Therefore it appeared that Brexit had only a modest negative effect on Eurozone businesses. In Germany, services’ PMI was much stronger-than-expected, which showed solid domestic demand. Manufacturing did less well [..]

Asian Session – Dollar eases as risk rally cools; Kiwi and aussie steadier after recent slide

Posted on July 22, 2016 at 8:23 am GMT

The US dollar remained not too far from yesterday’s lows when it slid following reports that the Bank of Japan governor has ruled out helicopter money to ease Japan’s economic woes. Speculation that the Bank of Japan would engage in helicopter money had sent the yen lower in recent days and yesterday’s denial dampened expectations of any drastic measures being announced at the Bank’s policy meeting next week. The news also put a halt to the risk rally that had [..]

European Session – Euro see-saws after Draghi says Brexit shock ‘contained’; Yen up on Kuroda remarks

Posted on July 21, 2016 at 3:06 pm GMT

The euro saw some volatility in Thursday’s European session after the European Central Bank maintained its existing outlook on the Eurozone economy following its first policy meeting after June’s EU referendum outcome in the UK. Many analysts had expected the ECB to warn of a possible increase to the downside risks to the euro area as a result of Britain’s decision to leave the EU. However, speaking at today’s press conference after the meeting, ECB President Mario Draghi said financial [..]

Asian Session – Dollar breaks above 107 yen; Kiwi pressured by RBNZ outlook

Posted on July 21, 2016 at 8:18 am GMT

Improved risk sentiment helped the dollar higher against the yen, while stimulus talk continued to pressure the Japanese currency on Thursday. The dollar broke above 107 yen for the first time in six weeks as Japan’s government said today it is planning a fiscal stimulus package worth 20 trillion yen. The figure is double the initial sum of 10 trillion yen that was previously mentioned. Most analysts are now with the view that the Bank of Japan will accompany the [..]

European Session – Commodities sag as dollar extends gains; pound boosted by BoE survey

Posted on July 20, 2016 at 2:51 pm GMT

Commodity prices fell sharply in today’s European session as the US dollar continued its advance against most major currencies. Sentiment for the US currency appears to have turned bullish in recent days after a run of solid US data put the prospect of a Fed rate hike at some point in 2016 back on the table. The dollar rose to its highest since June 24 against the yen, reaching an intra-day high of 106.71 yen in late European session. This [..]

Asian Session – Dollar rises to 4-month high on strong US data

Posted on July 20, 2016 at 8:23 am GMT

The US dollar climbed to a 4-month high against a basket of currencies in Asian trading on Wednesday, extending yesterday’s gains. The greenback has been bolstered in recent days by a series of solid US economic data, including stronger-than-expected housing figures yesterday. The dollar index rose above 97.0 for the first time since March yesterday and hit a high of 97.29 earlier in Asian trading today. The run of healthy indicators for the US economy has renewed expectations that the [..]

Asian Session – Aussie and Kiwi slide on risk-off and rate cut expectations

Posted on July 19, 2016 at 8:18 am GMT

The Australian and New Zealand dollars fell by over 1% in Asian trading on Tuesday as a combination of risk-off sentiment and expectations of further rate cuts drove the Antipodean currencies lower. The minutes of the Reserve Bank of Australia’s latest meeting kept open the possibility of additional easing as the central bank said inflation is expected to remain quite low and growth will likely moderate in the second quarter. It repeated its warning that an appreciating exchange rate could [..]

European Session – Markets steady after failed Turkish coup; Pound firms on BoE’s Weale comments

Posted on July 18, 2016 at 2:58 pm GMT

Risk sentiment faltered slightly in European trading on Monday as the yen erased some of its earlier losses and most European equity indices turned negative. London’s FTSE 100 was one of the exceptions though as it was boosted by a merger deal. This helped London shares to stand 0.6% higher in late session. The mega offer by Japan’s Softbank to buy UK chipmaker ARM Holdings boosted the pound today, which hit a high of 1.3291 dollars earlier in the European [..]

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