Daily Market Analysis

Forex Market Review (Asian Session) – Dollar on the backfoot as Treasury yield gap flattens; oil heads to two-year high

Posted on November 22, 2017 at 8:49 am GMT

The dollar was on the backfoot in Asia on Wednesday as the US yield curve flattened to its lowest spread in a decade, while dovish comments from the Fed chief late on Tuesday dragged the currency even lower ahead of the Fed meeting minutes. Energy markets also posted significant moves during the session, with oil prices heading towards two-year high levels. The difference between the 2-year and 10-year US Treasury yields touched the lowest since November 2007 on Tuesday, spreading fears of a possible economic downturn. This [..]

Forex Market Review (European Session) – Aussie bounces after RBA Lowe says next rate move is up; Turkish lira hits record low

Posted on November 21, 2017 at 4:26 pm GMT

The aussie overperformed its peers during the European session, posting a strong rebound after the RBA governor ruled out the possibility of expanding stimulus monetary policy. On the other hand, the Turkish lira hit a record low against the greenback after the Turkish president threatened to take control of the Central Bank of the Republic of Turkey (CBRT). Speaking at a dinner event in Sydney, the RBA governor underlined that “there is not a strong case for a near-term adjustment [..]

Forex Market Review (Asian Session) – Euro weakness on political risks supports dollar; aussie down after RBA minutes

Posted on November 21, 2017 at 8:36 am GMT

Trading conditions were thin on Tuesday as economic releases were few, while the US was in a holiday mode ahead of the Thanksgiving Day on Thursday. Japan is also celebrating its Labour Thanksgiving Day on Thursday. The dollar remained steady at one-week high levels during the session as political noise in Germany continued to weigh on the euro. The aussie touched a five-month low after the RBA meeting minutes signalled concerns on subdued wage growth. The euro recouped some of its losses made yesterday in Asia, [..]

Forex Market Review (European Session) – Euro fails to rebound after Draghi’s dovish words; pound gains on Brexit hopes

Posted on November 20, 2017 at 4:22 pm GMT

Political noise in Germany continued to draw markets’ attention during the European trading hours as the economic calendar was lacking major releases and any progress on the US tax reforms was expected only after the Thanksgiving holidays. The euro was on track to erase losses made in the previous session but dovish remarks by the ECB President pressured the currency. The dollar was in the green during the session while the pound drifter higher as hopes on Brexit negotiations moving [..]

Forex Market Review (Asian Session) – Euro drifts lower as German elections loom; dollar recovers despite tax risks

Posted on November 20, 2017 at 8:57 am GMT

The euro was the worst performer among its major peers on Monday after German negotiations to form a coalition government broke down during the weekend. Consequently, the dollar index jumped on the news, but the yen might attract investors’ attention this week as the future of the US tax overhaul is still unclear. The German Chancellor, Angela Merkel, failed to meet the second deadline to form a three-way coalition government during the weekend after the liberal FDP party announced on late Sunday that it would pull [..]

Forex Market Review (European Session) – Dollar on track for second weekly decline; loonie down on falling hike expectations

Posted on November 17, 2017 at 3:49 pm GMT

Housing data out of the US and Canadian inflation numbers did manage to attract some attention during today’s trading though the tone for the day was set earlier with developments on the US political front – most notably a potential connection between the Trump campaign and Russia and progress on the tax story – getting the bulk of today’s focus. At 1525 GMT, the dollar index, which gauges the greenback against a basket of currencies, was 0.2% down on the [..]

Forex Market Review (Asian Session) – Dollar struggles as Mueller subpoenas Trump’s campaign; safe havens jump on risk aversion

Posted on November 17, 2017 at 9:32 am GMT

The dollar opened weaker on Friday in Asia on news that several officials from Trump’s campaign were subpoenaed for Russia-linked documents despite markets relief on the US tax story after lawmakers approved the tax plan in the House of Representatives. Consequently, investors turned risk-averse during the session, pushing the safe-haven assets higher. According to the Wall Street Journal on Thursday, the Special Counsel, Robert Mueller, who has been appointed to investigate possible Russian meddling in Trump’s 2016 campaign, issued subpoenas to more than a dozen [..]

Forex Market Review (European Session) – Dollar flat as US House puts tax plan to vote; pound steady after retail sales surprise

Posted on November 16, 2017 at 4:26 pm GMT

Major currencies were moving sideways during the European session on Thursday as investors were widely anticipating whether Republicans would pass their tax code in the House of Representatives later today. Economic releases out of the Eurozone, the US, the UK, and Canada were also in focus but had a moderate impact on the markets. The US lawmakers were preparing for a crucial vote on tax reforms in the House of Representatives on Thursday after 1830GMT, with Republicans feeling confident that [..]

Forex Market Review (Asian Session) – Dollar stuck in a tax trap; aussie gains little on employment data

Posted on November 16, 2017 at 8:44 am GMT

Weakened prospects on the US tax reforms continued restricting the dollar’s gains in Asia despite Wednesday’s encouraging data cementing a third-rate hike this year, while a mixed employment report in Australia did little to support the aussie. On Wednesday, two Senate Republicans expressed their opposition to the tax plan, claiming that they would not support a plan which favours corporations over other enterprises including small companies. Particularly the new version produced on Tuesday aims to activate permanent tax cuts for corporations and only temporary tax cuts [..]

Forex Market Review (European Session) – Dollar and stocks falter; euro and yen shine

Posted on November 15, 2017 at 3:48 pm GMT

Markets remained in risk-off mode in European trading on Wednesday, with risk assets coming under pressure while safe-havens flourished. The US dollar extended its losses against the yen despite another batch of solid data out of the United States today. The euro rallied to a one-month high against the greenback, but the pound remained range-bound. The yen was the day’s strongest currency, though its driver was not the upbeat third quarter GDP figures released in Japan earlier in the day [..]

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