FX Daily Outlook | 16-01-17
Posted on January 16, 2017 at 10:36 am GMT[..]
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Asian session – Sterling drops on reports May will opt for ‘hard’ Brexit
Posted on January 16, 2017 at 8:20 am GMTThe pound fell sharply during Monday’s Asian trading as the market waited nervously for a key speech by British Prime Minister Theresa May on Brexit later this week. According to press reports, the UK would aim to abandon the EU’s tariff-free area in exchange for control over its immigration policy. Pound / dollar fell below the psychologically important 1.20 level to trade as low as 1.1986; levels unseen since the October sterling flash crash. The pound managed to reclaim the [..]
European Session – Dollar makes late rebound despite retail sales miss; euro hits 2-month high versus pound
Posted on January 13, 2017 at 3:59 pm GMTA late comeback by the US dollar led to a sharp reversal in most major pairs in an otherwise quiet session on the week’s last trading day. The greenback made an unexpected move upwards despite disappointing retail sales numbers out of the US today, with some analysts attributing this to a short squeeze. US retail sales came in lower-than-expected in December, and ‘core’ retail sales were particularly concerning. On the headline level, the month-on-month growth in December came in at [..]
Investment themes – Political developments trump fundamentals for dollar, pound
Posted on January 12, 2017 at 3:17 pm GMTOne interesting theme for the second half of 2016 as well as for the first few days of 2017 has been how political developments are moving two of the world’s most important currencies: the dollar and the pound. The two currencies are paying less attention to economic fundamentals and more on the pronouncements of the two countries’ new leaders, Prime Minister Theresa May and President-elect Donald Trump on Brexit and possible fiscal stimulus respectively. In the UK, statements by May [..]
European Session – Dollar struggles for direction in subdued trading
Posted on January 10, 2017 at 3:51 pm GMTCurrency markets were muted in European trading today as the absence of major data and investor angst about US President-elect’s press conference on Wednesday led to more cautious trading. The US dollar see-sawed around the 116 yen level while the euro was unable to hold above $1.06 by late European trading. Market concerns about what Donald Trump might reveal about his policies, particularly on trade, tax cuts and relations with China when he holds his first press conference since the [..]
FX Daily Outlook | 10-01-17
Posted on January 10, 2017 at 10:09 am GMT[..]
FX Daily Outlook | 09-01-17
Posted on January 9, 2017 at 10:32 am GMT[..]
Asian session – Dollar extends employment report gains while pound drops on ‘hard Brexit’ talk
Posted on January 9, 2017 at 8:25 am GMTThe US dollar managed to maintain Friday’s gains or even extend them against certain currencies during Monday’s Asian trading. Particularly against the Japanese yen the dollar climbed to around 117.50, while against the euro it traded at 1.0531. The dollar had earlier pushed the single currency to as low as 1.0515. Liquidity was overall thin because of a bank holiday in Japan, while there was a relative absence of market-moving developments following Friday’s all-important jobs numbers. On Friday, the US [..]
European session – Dollar stays pinned despite positive data
Posted on January 5, 2017 at 3:26 pm GMTThe US dollar remained under pressure and an attempt to stage a serious rebound was met with selling. Still, the dollar index managed to stay away from its late Asian session low of 101.71, but an attempt to scale above 102.51 level in mid-session failed. The index was at 102.00 at the time of writing shortly after the release of an upbeat December Services ISM. Dollar / yen was once again below 116 at 115.86, while euro / dollar was [..]
European session – Dollar falls victim to profit-taking ahead of Fed minutes
Posted on January 4, 2017 at 3:21 pm GMTThere was some selling of the US dollar during today’s European session as dollar longs saw the opportunity to book some profits. The greenback weakened broadly – both against the safe haven yen to 117.40, as well as against the aussie, which rose to 0.7266 against the US currency. The recent stream of positive economic news continued during today’s European session with the release of positive PMI data out of Germany, the Eurozone and the UK. Earlier during the Asian [..]
