26/ 02/ 2019

Brexit Talk and FED Chair Powell Testimony Put the GBP and USD in Focus

Sterling rises broadly today on news that opposition labor is going to back second Brexit referendum. Meanwhile, the UK government is also considering delaying Brexit. The Pound stays firm entering in to European session and eyes will be on Prime Minister Theresa May’s post Cabinet meeting update. Euro and Dollar are mixed.

Looking ahead, BoE inflation report hearings in the parliament will be the main focus in European session. Some volatility in the greenback could be triggered by Fed Chair Jerome Powell’s semi-annual testimony to Congress later in the day.

It’s a risk-off start to the day, with only the Pound making inroads. Rebellion within the Tory camp suggests that a no-deal Brexit is becoming unlikelier.

25/ 02/ 2019

Week Ahead | It’s Brexit, Powell, Trump, Trade and Stats to Drive the Markets

The Pound came out on top last week. Hopes of a delay to Brexit and expectations that Britain will not leave without a deal provided the upside. Trade talks also influenced as did central banks. The greenback continued gaining ground despite an improving sentiment. Meanwhile, chinese currency & economy strengthened today after Trump stating that he will delay all Tariffs against China on grounds of a productive talk between them which shows signs of relief for investors on CNY.

Get ready for a busier week as there will be plenty of opportunities for risk to hit markets in the coming days, with heaps of geopolitical news and major economic indicators due to land. This week focus will be mainly around Jerome Powell Testifying against Congress on a two day meeting & more ground breaking economic data from European Union & UK.

21/ 02/ 2019

Dollar sets Pace against Rivals on Positive FOMC Minutes, while Focus shifts back to Trade Negotiations

The greenback had risen slightly against the yen and trimmed losses versus the euro late on Wednesday after the Fed, in the minutes of its latest meeting in January, stated the U.S. economy and its labor market remained strong, prompting some expectations of at least one more interest rate hike this year sooner than expected.

The dollar inched up earlier today with revived expectations for a possible U.S. rate hike this year while investors shifted their focus back to trade issues for fresh directional cues.

Looking ahead, a particularly busy economic calendar placing focus on the EUR and USD. There will be nowhere for the Dollar to hide this afternoon, with all of the data expected to have an impact.

20/ 02/ 2019

Focus Remains on FED, May & Junker Brexit Talk

Despite starting the week with renewed concerns over U.S.-China trade relations, on balance the risks remained skewed to the upside. Last week’s high level negotiations in Beijing seemed to be a positive for the markets although no major details on the progress of moving toward a trade deal were released. All Treasury Secretary Steven Mnuchin said about the talks was “So far, so good.” Talks between the two economic powerhouses are continuing this week. Ahead of the start of new talks in Washington, Trump said that trade talks with China are going well, adding the current March deadline is not a “magical date.” According to the original deal reached in early December between the U.S. and China, both countries have until March 1 to reach a new trade agreement, or the U.S. can impose additional tariffs on Chinese products.

Trump’s comments on Tuesday provided just enough support to lift some of the uncertainty at the start of the trading week. However, concerns hit the EUR as US President Trump intends to put tariffs on cars' imports, which will affect the EU's industry.

Looking ahead, Brexit chatter and the FED minutes will be in focus through the day.