Daily Market Analysis

Asian Session – Yen eases after Turkish coup attempt fails

Posted on July 18, 2016 at 9:32 am GMT

The Japanese yen fell back at the start trading on Monday having risen sharply late on Friday after an attempted coup in Turkey drove demand towards safe havens. The news that a group within Turkey’s military had taken over the country sent the Turkish lira tumbling by over 5% against the dollar on Friday to a six-month low of 3.0476 per dollar. However, the lira rebounded sharply on Monday after it emerged that the coup had failed and President Erdogan [..]

European Session – Pound falls on dovish BoE comments; dollar gains on strong US retail sales

Posted on July 15, 2016 at 3:05 pm GMT

Sterling erased its post-Bank of England gains today on dovish comments made by the Bank’s Chief Economist Andrew Haldane who said the UK needed strong stimulus to protect the economy from the Brexit fall out. He proposed that the Bank prepare a package of measures by the August 4 policy meeting. Cable slid to $1.3248 in late European session trading, falling from a high of $1.3479 reached in Asia earlier today. The euro saw little reaction to Eurozone inflation data. [..]

Asian Session – Dollar tests 106 yen as China GDP lifts risk sentiment

Posted on July 15, 2016 at 7:31 am GMT

Better-than-expected data out of China boosted risk sentiment in Asian trading today following a more muted start to the day after last night’s terrorist attacks in France. News that a truck driver drove through crowds in Nice, killing 84 people, briefly lifted the yen on safe-haven trading. The dollar eased to just above 105 yen in early Asian trading from a high of 105.93 yen yesterday. But positive indicators from the world’s second largest economy helped the dollar break above [..]

European Session – Pound jumps on BoE decision to hold; yen extends weakness

Posted on July 14, 2016 at 2:42 pm GMT

Major currency pairs were mostly subdued in the early part of the European session in the absence of key data releases and as traders awaited the key event of the day – the Bank of England policy announcement. After the BoE decision to keep policy unchanged, sterling strengthened against the dollar to reach a high of $1.3478 before easing to around $1.3280. It was still up on the day after steadily rising from the Asian session low of $1.3104. The [..]

Asian Session – Dollar surges past 105 yen; Pound firms ahead of BoE

Posted on July 14, 2016 at 8:26 am GMT

The dollar continued its recovery against the yen on Thursday as it climbed to its highest since June 24 when the shock outcome of the UK’s EU referendum caused turmoil in financial markets. The greenback surged above 105 yen in Asian trading today as expectations of fresh stimulus in Japan puts pressure on the Japanese currency. Japan’s government has already said it will launch a fiscal stimulus package worth 10 trillion yen but there is also ongoing speculation that the [..]

European Session – Euro rises above $1.11, loonie gains after BoC holds rates

Posted on July 13, 2016 at 3:29 pm GMT

The euro and the Canadian dollar were the best performers out of the major currencies in the late European session. The loonie strengthened after the Bank of Canada announced its policy decision to leave interest rates unchanged at 0.5%. This was widely expected but what boosted the Canadian currency was a less dovish statement from the BoC. Despite some downward revisions to growth this year to 1.3% from a previously projected 1.7%, the statement was not overtly dovish as it [..]

Asian Session – Yen sell-off eases but cable extends gains ahead of May’s appointment

Posted on July 13, 2016 at 8:25 am GMT

The yen was slightly firmer on Wednesday after seeing two days of sharp losses, but risk appetite remained strong, helping Asian equities advance for a third straight day. Global stocks were boosted after US indices hit new all-time highs yesterday. Both the Dow Jones and the S&P 500 closed at fresh record highs as the outlook for global growth improved following a rebound in the US labour market in June and subsiding fears over the impact from Brexit. The dollar [..]

European Session – Pound rallies 3 percent versus yen

Posted on July 12, 2016 at 2:51 pm GMT

· Sterling gains as Theresa May set to become next UK Prime Minister · Yen weakens for second consecutive day on risk-on and expectations of further easing in Japan · Oil rebounds from 2-month lows Sterling staged a strong rally to hit a fresh one-week high against the dollar during today’s European session, peaking at $1.3186. The pound made a notable move higher against the yen, gaining 3 percent to touch a session high of 137.76 yen. The relief rally [..]

Asian Session – Pound tops $1.31 as political uncertainty eases; Risk-on drives dollar above 103 yen

Posted on July 12, 2016 at 8:25 am GMT

Risk sentiment continued to improve on Tuesday, easing pressure on the yen, which extended its losses into a second day. Equity markets were the main winners of the current risk-on mood as record low government bond yields increased the attractiveness of global stocks. The S&P 500 in the US closed at a new record high yesterday, helping Asian shares open with strong gains today. The dollar made its sharpest daily gain against the yen since October 2014 on Monday, closing [..]

European Session – Sterling stabilizes as Theresa May likely to become Prime Minister

Posted on July 11, 2016 at 2:57 pm GMT

The broadly upbeat risk sentiment in the markets today led to a weaker yen and a decline in gold prices as demand for safe havens faded. The Japanese yen started weakening during the Asian session and continued falling throughout the European session to push the dollar up to a one – week high of 102.65 yen. The yen came under pressure on expectations of additional stimulus measures by Prime Minister Shinzo Abe after elections over the weekend resulted in Japan’s [..]

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