FX Daily Outlook| 17-12-15
Posted on December 17, 2015 at 11:01 am GMT[..]
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Asian Session – Dollar makes modest gains after historic rate hike
Posted on December 17, 2015 at 8:53 am GMTThe US dollar rose across the board in currency markets after the Fed announced its first rate hike in almost a decade yesterday. The FOMC raised the Fed funds target range by 25bps to between 0.25-0.50% in a widely telegraphed move. The US currency initially dipped against other currencies after the announcement but later rebounded. The dollar index hit a two-week high of 99.0 but had eased slightly in late Asian trading today. The greenback was back above 122 yen [..]
Fed raises rates by 0.25% but dollar fluctuates on accommodative policy
Posted on December 16, 2015 at 9:18 pm GMTThe US Federal Reserve announced its first increase in the Fed funds rate since June 2006, raising the target range from 0-0.25% to 0.25-0.5%. The move, which was widely expected and carefully telegraphed by the Fed, signals the end of ultra-low interest rates that have been in place since the financial crisis. The decision was unanimous by the Federal Open Market Committee (FOMC) and comes after signs of division within the committee on the appropriate timing for lift-off following the [..]
European Session – Sterling falls on weak UK wage data; dollar subdued ahead of Fed
Posted on December 16, 2015 at 3:46 pm GMTThe wait for the Federal Reserve policy announcement today limited any big moves in the currency market as investors took on a cautious mood. Markets have priced in a 78% chance of a rate hike today. A 25 basis point increase in the Fed funds target range to 0.25 – 0.50% is widely expected at this December meeting after much speculation over the past year. This would be the first time the Fed would raise the key rate in nine [..]
FX Daily Outlook| 16-12-15
Posted on December 16, 2015 at 10:49 am GMT[..]
Asian Session – Dollar off highs as attention turns to FOMC announcement
Posted on December 16, 2015 at 9:05 am GMTThe dollar climbed to one-week highs yesterday in anticipation of an expected Fed rate hike later today. Slightly better-than-expected inflation data and 2-year US treasury yields rising to 5-year highs also helped the greenback on Tuesday. The dollar extended its gains against the yen today to climb to 121.90 yen in late Asian trading. The euro also fell against the dollar and hit a low of 1.0904 dollars yesterday but was up at 1.0935 dollars today. US inflation came in [..]
European Session – Euro falls below 1.10; dollar strengthens ahead of FOMC
Posted on December 15, 2015 at 3:57 pm GMTThe euro was unable to remain above $1.1000 as the market focus shifts to the Federal Reserve policy meeting which is being held over two days and concludes with an announcement on Wednesday. The dollar has been gaining across the board in the past session as a rate hike by the Fed is a likely scenario. The dollar rose against the yen to a high of 121.53. The rate increase itself is more or less full priced in at this [..]
European Session – Dollar gives back gains as US yields decline ahead of Fed; euro above 1.10
Posted on December 14, 2015 at 3:41 pm GMTSafe havens were boosted on subdued risk appetite ahead of the Federal Reserve policy meeting on Wednesday. The yen gained and gold bounced back late in the European session. Crude oil continued its decline and briefly dipped below $35 a barrel. The dollar gave back earlier gains against major currencies as US Treasury bond yields declined. The euro traded up to $1.0997, while the dollar slid versus the yen to 120.63 after reversing from 121.34 yen. A Fed rate hike [..]
European Session – Nonfarm payrolls reinforce Fed rate hike outlook, oiI plunges on OPEC announcement
Posted on December 4, 2015 at 4:00 pm GMTThe US nonfarm payrolls report was the main focus of the markets today after the dust settled from yesterday’s big moves driven by the ECB. The euro settled down after its biggest surge in six years versus the dollar following Thursday’s ECB disappointment. The central bank was not as aggressive as markets had expected and so the scale of the market’s reaction was quite big, with the euro rallying the most since 2009 to reach a high of 1.0980. Today [..]
Yellen gives clearest indication to date that rate hike maybe near
Posted on December 3, 2015 at 11:10 am GMTThe Chair of the Federal Reserve, Janet Yellen yesterday gave the clearest indication yet that a rise in US dollar interest rates is near. Yellen said she was “looking forward” to the first rate hike, as it would signal that the US economic recovery was strong enough to be able to withstand non-zero interest rates. Delaying the first rate rise further could have negative implications, according to Yellen. The Fed Chair therefore tried to give a positive interpretation of the [..]
