30/ 12/ 2018

Week Ahead - Trump Vs Xi Jinpin tensions eases paving way for Stronger Dollar

After an unexpected rally that carried the dollar to 18-month peaks and saw it end 2018 as investors’ top trade, the currency faces challenges in the coming year.

The possibility that the U.S. Federal Reserve will not raise interest rates as many times as signaled

While the Fed raised interest rates in December and signaled it would stay the course on policy tightening, money markets reckon otherwise.

U.S. President Donald Trump said on Twitter on Saturday that he had a “long and very good call” with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well.

23/ 12/ 2018

Week Ahead | Dollar rallies post Fed Meeting likely to End on a Stronger Note

The dollar gained on Friday as investors sought the currency’s safety amid persistent equity market volatility and a possible U.S. government shutdown. U.S. President Donald Trump conceded on Friday there was a good chance the Senate would not approve his demand for $5 billion toward funding his border wall project and a government shutdown would probably begin at midnight.

Two things dominated the financial world this 2018: political turmoil and fears of slowing economic growth. This week will be more reactive to Political & Geo-Political Tensions and lack of Economic Data will put the Dollar on edge against the Rivals. 

20/ 12/ 2018

Dollar steadies while signaling future Interest Hikes, UK Data shifts to Centre Stage

As it was anticipated widely, the U.S. Federal Open Market Committee decided to hike the target rate for the federal funds by 0.25 percentage (so basically it is increased from 2.25% to 2.5%) points to 2.5 percent. This is the ninth quarter-point rise since the end of 2015.

The FOMC’s statements’ stated that the economy was widely the same from their earlier statement. “The Labor market has continued to strengthen and the economic activity has been rising at a strong rate.”

They further stated that the Fed would continue to monitor global economic and financial developments and assess their implications for the economic outlook.

19/ 12/ 2018

Dollar struggles to follow through against Rivals

The dollar fell to a one-week low on Tuesday as investor’s unwound long bets on the currency, anticipating the Federal Reserve could slow the pace of U.S. interest rate hikes after this week’s policymaking meeting. The Euro gained on the Dollar due to the Dollar weakness on a broad measure of less Anticipation on the Federal Reserve Projections for the year 2019.

The British pound rose further away from 20-month lows on Tuesday, helped by a weaker dollar and hopes Prime Minister Theresa May can avoid a no-deal Brexit.The prime minister pledged on Monday to get assurances from the European Union before mid-January to try and break a deadlock over Britain’s fraught efforts to quit the bloc.