04/ 12/ 2018

Dollar Weakens as Trade Truce Supports Confidence and Focus shifts to FED.

The common currency was undermined by persistent political turmoil in Europe, as Italy can't come with a budget that satisfies the EU. The greenback, which suffered from a surprise statement from the Fed's head, Powell over rates being close to "neutral" recovered ground as the FOMC Minutes released afterward showed no changes to the current path

The greenback, which suffered from a surprise statement from the Fed's head, Powell over rates being close to "neutral" recovered ground as the FOMC Minutes released afterward showed no changes to the current path. A more positive news coming from the G-20 is that China and the US agreed a 90 days' truce. Both countries agreed not to impose additional tariffs on each other for a period, which will be dedicated to talks, aiming for a solution.

Today markets will be focused around GBP Bank of England Governor Speech & AUD RBA Interest Rate Decision

29/ 11/ 2018

Rivals of Dollar Boosted by Dovish Fed Jerome Powell Statement

Sterling gave up most of its earlier gains and traded broadly flat on the day after the Bank of England warned that Britain risks a bigger hit to its economy than the financial crisis if it leaves the European Union in a “disorderly” manner. For a Change, it was not only the Brexit headlines what moved the Cable. The massive sell off pressure against the Dollar on anticipation of Fed Rate halt.

Euro was stable throughout the European session, however, due to the shift in Powell's tone, the currency rallied due to a drastic change from October's comment on neutral.

Today the market will be focusing more on the Euro Zone & US Economic Data figures such as EU Unemployment Rate and Harmonized Index, while from U.S. FOMC Minutes & Core Personal Consumption

28/ 11/ 2018

Dollar stays afloat on Fed Expectations

The Dollar held near two-week highs on Wednesday after a Senior Federal Reserve Official reaffirmed the need for further rate increases and as investors sought shelter in Dollar thanks to simmering Sino-U.S. Trade Tensions keep surmounting. Dollar has come under some pressure recently on signs the Fed might slow down the pace of its future rate increases amid cooling global growth.

Trump stated this week in an interview with the Wall Street Journal that it was “Highly Unlikely” he would accept China’s request to hold off a planned increase in tariffs had scared riskier assets in a boost to safe haven currencies including the Dollar & Yen.

Looking ahead, economic data released through the day is on the busier side, with key stats scheduled for release including finalized 3rd quarter GDP numbers and October trade data and new home sales figures, the Dollar likely to be particularly sensitive to the numbers, U.S President Trump likely to be scouring the trade figures ahead of the G20 that starts on Friday.

27/ 11/ 2018

Market Weighs heavily on Geo-Political Tensions Between US-Sino

The greenback pared its initial losses made in Asia and European yesterday morning and rallied against its peers due to rising global stock market and rising U.S. Treasury yields. Intra-day decline in the single currency following ECB Draghi's mildly dovish comments helped USD to strength broadly despite euro's initial gain in European morning on report that Italy is willing to compromise over its 2019 budget deficit target. Risk trades rallied, but the tone may quickly shift as Trump will release his official statement against the Chinese on US Tariffs on their Imports.

Looking ahead, Trump talks of more tariffs as the G20 Summit approaches, with Brexit chatter continuing to pin the Pound back on expectations of the deal being thrown out.