13/ 02/ 2019

Dollar moves on speculation of Trump-Xi Meeting to be held in Beijing Soon

The dollar edged lower versus its peers on Wednesday, as rising hopes of a breakthrough in U.S.-China trade talks led investors to put money into the euro and Asian currencies.

Risk appetite in broader markets was revived after U.S. President Donald Trump said on Tuesday that he could let the March 1 deadline for a trade agreement with China “slide for a little while,” but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point. “We seem to have moved away from dollar dominance over the last two sessions...this weakness is directly related to the improving risk sentiment around trade stated by Analysts Globally.

Looking ahead, today's EUR macro calendar remains relatively busy, with a host of fresh relevant updates from the UK economy, including the UK CPI, PPI and retail price index. Apart from the data, the speeches from the global central bankers will also hog the limelight in the day ahead.

12/ 02/ 2019

US-China & Brexit Trade Talks will continue to Move the Market

Asian markets were mixed in Monday trading as markets wake up from last week’s Lunar New Year Holiday. Fresh selling is seen on news that White House senior counselor Kellyanne Conway said Trump may still meet Chinese President Xi Jinping in the near future stating that it looks like US and China are getting closer to a deal. Dollar also rides on the news and jumps broadly in early US session yesterday. Meanwhile, Sterling is generally weak after poor GDP data, which showed deep contraction in December, but loss in the pound is so far limited.

Looking ahead, this week’s talks come as the world’s two largest economies trying to hammer out a deal before March 1st deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. On the other hand, UK Prime Minister Theresa May will make her statement in the parliament today before the debate which will take place on 14th February. Attention would be on any motions that could shift the control of Brexit from the government to the parliament. And if so, that would open up the route for lawmakers to renegotiate, delay, or even block Brexit.

10/ 02/ 2019

Week Ahead | U.S.-China trade talks resume this week & EU gives May glimpse of Brexit hope

The dollar edged higher against a basket of currencies on Friday, ending its strongest week in six months, as traders piled into the greenback in a safe-haven move on worries about a weakening global economy. The euro hovered at a two-week low the single currency still posted its steepest weekly drop against the dollar in over four months in the wake of data that showed an economic slowdown in Europe was spreading.

Looking ahead, this week highlights will be around US Fed Powell on Tuesday and a never-ending Brexit and US-China trade talks will remain in focus. In addition, GDP from UK, Japan, Germany and Eurozone will be particularly watched to gauge the condition of the economy.

07/ 02/ 2019

Brexit Chatters to Keep the GBP and USD in Focus

The major U.S. stock indexes finished lower yesterday in a lackluster trade amid mixed quarterly earnings results and after President Trump’s State of the Union address failed to what investor appetite for riskier assets. Better-than-expected U.S. Trade Balance data also failed to stimulate buyers, while concerns over another potential government shut down later this month encouraged some investors to pare positions.

Looking ahead,the numbers will likely be brushed aside, with the focus expected to be on today’s BoE monetary policy decision. While rates are expected to be on hold, Brexit leaving the BoE in a holding pattern, the Bank’s outlook on growth and inflation will be key considerations from the inflation report and meeting minutes.Alongside an expected response to the BoE’s views on the economy, Brexit chatter will remain in focus at the background. While the British PM continues to face hurdles over the Irish backstop, support for the Pound could come from any rise in prospects of a delay to the end of March departure from the EU.The Pound could be in for a choppy day.