24/ 10/ 2018

Focus shifts to Euro Markit Figures & US PMI

Sterling gained against the Dollar and Euro yesterday after Ireland’s RTE news reported that the European Union may offer Britain a UK-Wide Customs union. Dollar strength was not significant since investors moved much of their latest purchase to JPY & CHF yesterday due to the lack of strong economic data from US markets. As per analysts, euro will not be able to post meaningful gains over the dollar in the months ahead, since the currency market volatility will increase as the budget row between Italy and the EU heats up.

Geo-political risk, private sector PMI numbers and BoC monetary policy all in focus on a busier day for the markets.

23/ 10/ 2018

Political uncertainty rules Global Markets due to Lack of Economic Data

The major U.S. equity markets finished mixed on Monday as investors continued to express concerns over a slew of corporate earnings reports due this week and rising geopolitical tensions.

Dollar gained throughout the European & American session yesterday sharply and this was based on political uncertainty that has major fuel to the fire. Analysts believe that risk appetite dominated the first half of the day. The US Dollar was also boosted by political concerns in the Europe, with Brexit and the Italian budget turmoil dominating the news. Meanwhile, concerns around Italy eased after PM Giuseppe Conte told reporters, Italy won't leave the Eurozone, despite the dispute over the budget. Meanwhile, sterling pound plummeted to its lowest in over two weeks, following headlines indicating that the Democratic Unionist Party from Northern Ireland (DUP) was said to back the amendment being tabled, this caused the EU’s Northern Ireland backstop illegal.

22/ 10/ 2018

Week Ahead | Monetary Policy and Geo-Politics to Influence the Market

The markets were driven by multiple themes last week. Dollar ended up broadly higher as supported by hawkish FOMC minutes and rebound in treasury yields. On the other hand, Sterling was the weakest one as pressured by Brexit impasse, weaker than expected CPI and retail sales. In particular, UK Prime Minister Theresa May achieved nothing in the EU summit. Euro was originally very weak on Italian budget concerns. EU’s warning letter to Italy should have formally started the clash. Nonetheless, the common currency was later saved as EU expressed the intention to de-dramatize the situation.

A busy week ahead sees the BoC and ECB in action, with the Saudis joining China on the hit list and then there’s Brexit and Italy to consider.

18/ 10/ 2018

Dollar Strengthen on Fed Minutes & EU Brexit Summit winds up today

Euro & GBP both declined against the Dollar on largely towards the FED Minutes released yesterday but there were few other reasons for the stronger dollar movement. Looking at the conomical data out-front Euro Consumer Price Index & GBP Consumer Price Index came negative resulting further boost to the Dollar strengthening. Also, Geo-Political tensions yet unresolved among Irish & UK Border, Sterling lost ground majorly on the back drop of EU Brexit Summit yet not indicating a clear future outlook of their Trade Arrangements with UK.

Today’s focus will be around US Jobless Claims reports but majorly the Geo-Political tensions is yet a mother of all evils in uncertainty globally. With EU Brexit Summit coming to an end we will be given a clear indication on their future projections for both UK & EU.