DXY

Strategy update: The trade ‘truce’, the Fed’s possible pause and May’s Brexit woes

Posted on December 5, 2018 at 3:06 pm GMT

Markets unconvinced by Trump-Xi trade rapprochement The Fed could slow rate hikes Market braces for Brexit turbulence as May struggles to convince Parliament Markets unconvinced by Trump-Xi trade rapprochement A major theme for global markets and the global economy is the uncertainty caused by the frictions between the United States and China. It was therefore an initially positive piece of news that the two countries would restart a new round of negotiations that would last for 90 days, that China would pledge to import [..]

Technical Analysis – Dollar index consolidates gains within ascending channel

Posted on December 5, 2018 at 11:27 am GMT

The dollar index has been moving sideways after unlocking 1 ½-year highs at 97.50 within the ascending channel. In the short term, consolidation will likely continue as the red Tenka-sen line looks to be steadying again above the blue Kijun-sen line which is also flat, while the MACD has slipped below its red signal line, though marginally. On the upside, the index could retest the previous highs of 97.42 and 97.50 which are not far away from the middle bound of [..]

European Open Preview – Risk-on sentiment resumes as trade storm eases

Posted on December 3, 2018 at 9:37 am GMT

Stocks up, dollar down as trade fears ease French President Macron under political pressure but euro heads up Brexit risks loom in the background Oil surges as Russian President backs production cuts; Qatar to withdraw OPEC membership Stocks head higher on trade relief The US President, Donald Trump, and the Chinese leader, Xi Jinping had progressive trade talks during their dinner on the sidelines of the G20 summit on Saturday, with the world’s largest economies deciding to ceasefire the [..]

Gold challenges upper bound of triangle as risk events loom – Commodity News

Posted on November 29, 2018 at 3:39 pm GMT

Bullion is currently testing the upper bound of a triangle pattern, with the latest leg higher fueled by a drop in the dollar after Fed chief Powell struck a cautious-perceived tone. Several risk events lie ahead, including the FOMC minutes, the Trump-Xi meeting, and potential US tariffs on cars; the way these play out may determine the yellow metal’s short-term direction. Gold continues to trade almost entirely as a mirror reflection of the US dollar, a pattern that has dominated [..]

European Open Preview – Pound spikes higher on Brexit news; eurozone PMIs and key Canadian data coming up

Posted on November 23, 2018 at 8:47 am GMT

Here are the latest developments in global markets: FOREX: The dollar is nearly 0.3% lower against a basket of six major currencies on Friday, looking set to post a third day of declines in a row, without any fresh catalyst behind these moves. Meanwhile, the British pound soared on Thursday, buoyed by news that EU and UK negotiators reached an accord on the draft political declaration, setting the stage for the deal to be approved by EU leaders over the weekend. [..]

European Open Preview – Dollar retreats a bit as risk aversion takes a breather; ECB minutes due

Posted on November 22, 2018 at 8:49 am GMT

Here are the latest developments in global markets: FOREX: The dollar index is a little lower on Thursday (-0.12%), extending losses from yesterday that were owed to disappointing US durable goods data and reports the Fed will debate whether to pause its hiking cycle early next year. The euro clawed back some of its recent losses, aided by optimism that the EU-Italy standoff may be resolved diplomatically. STOCKS: Wall Street closed mostly higher on Wednesday for the first time this week, amid [..]

European Open Preview – Dollar capitalizes on risk-off mood; euro eyes Italian budget saga

Posted on November 21, 2018 at 8:46 am GMT

Here are the latest developments in global markets: FOREX: The dollar index is slightly lower on Wednesday (-0.17%), giving back some of the significant gains it recorded in the previous session as investors sought the safety of the world’s reserve currency. The loonie was the biggest underperformer, weighed down by another plunge in oil prices. Meanwhile, the yen and the franc attracted inflows amid the broad-based risk aversion, though both are a little lower today, as sentiment seems to have turned [..]

European Open Preview – Dollar extends pullback; BoE’s Carney appears before parliament

Posted on November 20, 2018 at 8:48 am GMT

Here are the latest developments in global markets: FOREX:The dollar index is marginally lower on Tuesday (-0.08%), extending the losses it posted in the previous session as US bond yields declined and a disappointing NAHB index fueled speculation the US economy may have peaked. The Swiss franc was the best performer, attracting inflows amid risk aversion in markets, while the euro followed closely in its tracks. The pound was little changed amid no fresh Brexit news, though investors may turn [..]

European Open Preview – Cautious Fed commentary weighs on dollar; Brexit, Italy, Sino-US trade in focus

Posted on November 19, 2018 at 8:49 am GMT

Here are the latest developments in global markets: FOREX: The dollar is practically unchanged on Monday, licking its wounds after a considerable drop in the previous session, which came on the back of cautious commentary from Fed policymakers. The euro capitalized the most on the dollar’s retreat, remaining largely unfazed by the heightened volatility in the British pound. STOCKS: The Dow Jones (+0.49%) and the S&P 500 (+0.22%) closed higher on Friday, after US President Trump hinted at a potential “ceasefire” in [..]

US Open Preview – Sterling largely consolidates massive losses with PM May’s leadership on tightrope

Posted on November 16, 2018 at 12:29 pm GMT

Here are the latest developments in global markets: FOREX: The dollar was slightly up versus a basket of currencies, with the closely watched British currency being broadly higher. Still, the pound mostly consolidated Thursday’s sharp losses on the back of the Brexit drama that unfolded, and which still appears to have room to run. One exception was the yen, which came on the receiving end of safe-haven flows and thus the pound was unable to advance against it – pound/yen [..]

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