16/ 04/ 2019

Eyes on UK Wages and ZEW Survey

The Euro strengthen against the U.S. dollar on Monday,  as investors' appetite for riskier currencies got a boost after Chinese data showed exports rebounded last month. Signs of economic stabilization in China and a strong start to U.S. corporate earnings season boosted demand for riskier assets, leaving the dollar to turn in its worst weekly performance against the euro in four weeks

Sterling strengthened against dollar on Monday, as investors awaited for new Brexit-related developments. Volatility in the pound has collapsed since European Union leaders and the British government last week announced Brexit would be delayed for up to six months. That removed the immediate risk of a no-deal Brexit, but it also raised the possibility of months of uncertainty in Britain as politicians struggle over how  or whether   to leave the EU with most currencies staying within well-trodden trading ranges ahead of European and Chinese data

10/ 04/ 2019

Global Trade Tensions adds up while Brexit summit is around the corner

The safe-haven yen remained in demand on Tuesday late session & this morning as investor caution prevailed due to fresh U.S.-Europe trade tensions and the International Monetary Fund’s downgrade of its global economic outlook. Most major currencies were locked in narrow trading ranges as market participants largely kept to the sidelines ahead of a crucial Brexit summit meeting and a rate decision by the European Central Bank later in the day. Broader sentiment in the market remained subdued as the flare-up between the United States and Europe added to other potential global flashpoints over trade, including Sino-U.S. negotiations.

“Now, there are battles on two fronts for the U.S was stated by Wall Street Journals.

It’s a busy day ahead. Economic data, the ECB, the FOMC, and Brexit will all be in focus through the day.

09/ 04/ 2019

Uncertainty Remains as Main Mover with the Dollar & Euro after Trump's Comments

The dollar sagged on late session on Monday after weak U.S. economic data while commodity-linked currencies such as the Canadian and Australian dollars drew support from an ongoing surge in crude oil prices. The euro moved further above a one-month low reached last week as investors squared positions before European Central Bank meeting this week. Britain is due to leave the European Union on Friday but May is seeking a compromise with the Labour Party regarding terms for Brexit. May heads to Berlin and Paris today to meet Chancellor Angela Merkel and President Emmanuel Macron before setting out the case for another delay ahead of an EU leaders’ summit on Wednesday in Brussels. 

Dollar and Euro are trading as the two weakest ones today as pressured by renewed threats of escalation in global trade war. While trade talks with China continue to drag on, US is preparing to start another battle targeting EU. Meanwhile, Sterling is trading generally firm, but bounded in range, as markets some concrete developments on Brexit. Given the wall of uncertainty, a little setback may be necessary as investors seem to be a little reluctant to buy strength at current price levels. Instead, they may be willing to let a little air out of the rally in an effort to drive prices into a value zone.

Looking ahead, Brexit and any chatter on the U.S – China trade talks will be the key driver. 

08/ 04/ 2019

Week Ahead | Brexit, ECB, and FED will Drive the Market

It was a hectic week for the global financial markets last week. Progress on trade talks was positive, while the influence of Brexit and the stats were mixed.

The US-China trade negotiation last week ended with “guarded optimism” from White House economic adviser Larry Kudlow, without details of course. Focus is back on never-ending Brexit drama as April 12 deadline looms. EU-China summit in Brussels might catch some attentions but expectations are low.

It’s a relatively busy week ahead especially for the Pound as investors will keep an eye on the updates about Brexit if Britain will leave the EU with a deal, without a deal or extend. Trade talk and stats remain in focus with ECB, FED and FOMC meeting on Wednesday that will be more interesting to take note.