Daily Market Analysis

Asian Session – Australian dollar rebounds from post-election jitters; Gold extends gains

Posted on July 4, 2016 at 8:24 am GMT

The Australian dollar opened sharply lower on Monday after the results so far from Saturday’s federal election in Australia have pointed to no clear winner. With more than two-thirds of the votes counted, the prospect of a hung parliament has raised concern among investors that Australia might lose its triple A credit rating. Prolonged political uncertainty could make it less likely for Australia’s government to better manage its budget deficit. The aussie fell as a result, dropping to 0.7444 against [..]

European Session – Euro recovers as ECB not seen in a hurry to change QE rules

Posted on July 1, 2016 at 2:59 pm GMT

The euro recovered above 1.11 versus the US dollar in today’s European Session after indications that the ECB would not change its QE rules in order to make its asset purchases more flexible. Such speculation was hurting the euro; mainly that the ECB was preparing to change its QE rules in order to buy more peripheral bonds. This was not substantiated and the euro managed to recover. Risk assets were strong again today, as most European stock markets were up [..]

Asian Session – Pound drops after Carney hints at stimulus; yuan hits fresh 2010 lows

Posted on July 1, 2016 at 7:55 am GMT

The pound dropped back below the 1.33 level against the dollar on Thursday after the Bank of England Governor Mark Carney hinted at a summer rate cut. In a live broadcast, Carney told reporters yesterday that “some monetary policy easing will likely be required over the summer” as economic growth in the UK takes a hit from the Brexit fallout. The news boosted stocks but weighed on the pound as most analysts now expect for the Bank of England to [..]

European Session – Pound holds above $1.34 as Johnson quits Tory race but euro comes under pressure

Posted on June 30, 2016 at 2:27 pm GMT

The euro and the pound fluctuated against the dollar in European trading on Thursday, though they remained within their recent trading range. End-of-quarter positioning by traders contributed to the volatility. The pound had a weak start to the day, dropping to a low of 1.3362 dollars towards the end of Asian trading, but recovered to 1.3495 dollars by mid-European session. Improving risk sentiment helped sterling but a surprise announcement from former London Mayor Boris Johnson that he will not run [..]

Asian Session – Pound steady but dollar drifts lower on fading rate hike expectations

Posted on June 30, 2016 at 8:28 am GMT

Currency markets maintained their calm on Thursday as investors turned increasingly hopeful that central banks would maintain or expand accommodative monetary policy following the Brexit vote. The dollar drifted lower against a basket of currencies for a third day as expectations of a Fed rate hike this year declined dramatically in the wake of the surprise UK vote to leave the EU. The greenback was slightly down against the yen at 102.54 in late Asian trading today, while the euro [..]

European Session – Pound breaks above 1.35 dollars as some calm returns to markets post-Brexit

Posted on June 29, 2016 at 2:24 pm GMT

The British pound headed higher for a second day on Wednesday as risk appetite improved in European trading following a cautious start to the day. Sterling had climbed by 1.3% to 1.3510 dollars in late European session, while the euro slipped to 0.8230 pounds. The yen pulled back from earlier gains as risk aversion eased during the course of the day. The pound and the euro both firmed against the Japanese currency at 138.76 and 114.20 yen respectively. A strong [..]

Asian Session – Global stocks recover but yen on the rise again as markets still nervous

Posted on June 29, 2016 at 8:37 am GMT

Global stocks attempted a strong rebound yesterday as the immediate shock of the UK vote to leave the EU appeared to dissipate. However, risk sentiment was still very weak as the pound made only a modest recovery and the yen was back on the rise again today. The S&P 500 in the US closed 1.8% higher on Tuesday, while in Europe, London’s FTSE 100 closed up 2.6%. Asian stocks on Wednesday were mostly positive too but currency markets remained uneasy. [..]

European Session – Improved risk sentiment lifts pound; aussie outperforms

Posted on June 28, 2016 at 2:56 pm GMT

A rebound in risk sentiment today prompted some sharp moves in the major currencies but there are still significant political and economic risks ahead. Commodity prices reflect improving sentiment, with gold lower and crude oil prices higher on the day. Sterling gained some 70 pips against the dollar during the European session to rise into the $1.33 handle after falling sub-$1.32 yesterday to a fresh 31-year low. But gains are likely to be limited and the pound is expected to [..]

Asian Session – Pound steadies ahead of EU summit; yuan hits fresh 2010 low

Posted on June 28, 2016 at 9:18 am GMT

The UK pound was firmer on Tuesday as it attempted to move away from yesterday’s multi-year lows. Sterling hit a fresh 31-year low of 1.3119 dollars on Monday as uncertainty about the future of Britain’s relationship with the EU weighed on the UK currency. Attention is now shifting to the EU summit later today, where EU leaders will likely press David Cameron not to delay triggering Article 50 that would start the process of Britain negotiating its exit from the [..]

European Session – Sterling hits fresh 31-year low vs dollar as Brexit uncertainty rattles financial markets

Posted on June 27, 2016 at 3:09 pm GMT

Sterling hit the lowest since September 1985 against the dollar on Monday as investor fears over the impact of the Brexit vote on the UK and global economy dominated the market theme. The pound had stabilized around 1.34 dollars after opening almost 2% lower, but it slid further in European trading to touch a new 31-year low of 1.3119 dollars. The euro rose to fresh 3-year highs to climb to 0.8364 pounds but it remained subdued against the dollar. The [..]

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