25/ 04/ 2019

Euro & Sterling Pound tumbles against the Dollar as Markets Remain Cautious

The euro steadied against the dollar earlier today after renewed worries about a growth slowdown in Germany drove it to a 22-month low overnight, while the yen showed little reaction to a Bank of Japan policy decision.  The pound held at a two-month low on Wednesday, weighed down by a broad-based rally in the dollar and fading hopes of a breakthrough in Brexit talks between the British government and the opposition.

Looking ahead, today’s markets will be mostly around Bank of Japan’s Statement, Interest Rate Decision & US Initial Jobless Claims, while there are no stats due for release in Eurozone, the ECB’s economic bulletin will garner plenty of attention later this morning. Further negative commentary on the economic outlook would pin the EUR back in the early part of the European session. From US, durable goods orders and the weekly jobless claims figures are due out of the U.S. The focus will likely be on the durable goods orders, with the markets looking for a bounce back from February’s 0.2% fall.

24/ 04/ 2019

Dollar Hovered Against Rivals on Home Sales Growth

The U.S. dollar hovered near a 22-month high against its peers on after strong U.S. housing data further eased concerns towards the world’s biggest economy. U.S. data on Tuesday showing sales of new single-family homes jumped to a near 1-1/2-year high in March added to recent positive readings in retail sales and exports. The euro, which has the largest weighting within the dollar index, was down. The European economy looks particularly weak relative to the U.S. economy and this highlights the euro’s weakness.

“The United States is now expected to have experienced firm growth in the first quarter, reinforcing the dollar’s strength relative to the euro.” is the statement released by Market Analysts. U.S. first quarter GDP data on Friday could strengthen the case that while the current period of global expansion is in its late stages, the United States is on a firmer footing compared with other leading economies.

Looking ahead, the Bank of Canada and corporate earnings could give the Greenback more upside on the day.

23/ 04/ 2019

Dollar barely higher on Holiday Mood across Global Markets

The dollar edged up against a basket of key rivals earlier today, while the Canadian dollar was supported by rising crude oil prices due to U.S. plans to tighten a clampdown on Iranian oil exports from next month. The greenback has firmed in recent weeks on the back of higher U.S. 10-year Treasury yields and signs of strength in the U.S. economy following a weak start of the year.

After the long Easter holiday, financial markets in Australia and New Zealand were set to reopen across Europe later in the day. This week could give a strong indication of whether the dramatic dovish turn from global central banks, and in particular the Fed, over the last few months has been enough to change the global growth dynamic stated by Wall Street Officials & Strategist.

It’s a mixed start to the day for the majors. While the Pound managed to hold steady, things could change later today as MP’s return to Westminster today following the Easter recess. Theresa May will be on a mission to wrap up an exit solution before the EU Parliamentary elections and perhaps, more importantly, a more meaningful call for a vote of no confidence. Talks of a vote of no confidence have already begun to do the rounds.

22/ 04/ 2019

Week Ahead | Brexit, Monetary Policy and US GDP will be in Focus

The financial markets were generally dominated by positive sentiments last week. Major global economic risks seemed to be receding generally, even though some uncertainties remain.

From US, on the data front, key stats were once more skewed to the negative. From UK, it ultimately boiled down to Brexit, however. Following the EU vote in favor of a Brexit extension through to 31st October, the lack of Brexit chatter did the Pound few favors. Out of the Eurozone, it was a mixed bag for the EUR. While sentiment in both Germany and the Eurozone saw a marked improvement in April, private sector PMI numbers continued to disappoint. Of greater influence, however, was weaker than forecasted manufacturing PMI numbers out of France and Germany.

Looking ahead of the week, Brexit, Earnings, Stats and Monetary Policy will be in Focus.