02/ 10/ 2018

Will Jerome Powell Kick Off the Dollar to a flying 3rd Quarter against Rivals?

The turmoil surrounding the Italy’s Budget Deficit undermined the common currency against the dollar with further trade tensions across Mexico, Canada & US easing gradually, markets reacted positively towards the Dollar. Further kick back from the data out-front of Eurozone which is Markit Manufacturing PMI figures showed a stagnancy of manufacturing sector of Eurozone. Regardless of the US Reports coming negative on Markit Manufacturing it out performed the rivals due to more major political negotiations going in favor of the United States.

Today the market will be keyed in towards the political & economical reports released along with the highlight of the day will be US Fed Reserve Chairperson Jerome Powell’s speech.

30/ 09/ 2018

Week Ahead | Dollar gains on Euro Political Distress & Fed's Bullish Outlook

There were two major reason which lead USD strengthened against all rival currencies. First is the hike in Interest rate decision which came out last week Wednesday from US Fed reserve which lead investors to move from other currencies & Investments to US Markets & USD. Also the speech made by FED Chairperson Jerome Powell followed by Interest Rate hike was on a positive note towards growth in US Economy.Secondly the tensions escalated by the Italian government which defies the EUR regulations on approval of 2.4% budget deficit for Italy. Interior Minister Salvini said: “Italian's rights to jobs and pensions come before EU's bureaucrats.” which pushed EUR more negatively against the Dollar.

This week’s highlight will be the Non-Farm payroll figures on Friday & Average Hourly Earnings which will be a key indicator on the recent statements released by Fed Chairperson Jerome Powell last Thursday.

27/ 09/ 2018

Dollar takes Center Stage after 3rd Rate Hike for 2018

Dollar steadied against its peers earlier today as a brief boost from the latest U.S. Federal Reserve interest rate hike faded, with lower U.S. Treasury yields reducing support for Greenback. Analysts expected the Fed raised Interest rates for the third time this year on Wednesday. It still foresees another rate hike in December & another in 2020. Jerome Powell Fed Chairman of US Federal Reserve stated that they are accommodative on the monetary policy. Federal Reserve has raised rates gradually since late 2015 from a near-zero level.

Looking ahead, the economic calendar is rather busy today. German Gfk consumer sentiment and CPI will be featured in European session. Eurozone will release confidence indicators and M3. ECB will release economic bulletin. Later in the day, US will release trade balance, wholesale inventories, durable goods, jobless claims, pending home sales and Q12 GDP final.

24/ 09/ 2018

Week Ahead | All eyes on Powell & Trade Wars and Rate Decisions Keep Traders on Edge

The American dollar found room to recover some ground at the end of the week,  ending it anyway with strong losses against most major rivals. The EUR/USD pair finished Friday at 1.1748, after hitting 1.1802, its highest since mid-June, as risk-aversion returned by the hand of Brexit headlines, after a failed meeting in Salzburg with no agreement on the Irish border issue. EUR's momentum was also affected by softer-than-expected data, as the preliminary Markit PMI for September showed that growth in the Union continued decelerating, growing at the second-weakest rate since late-2016, according to the official report, as manufacturing growth was subdued by export orders stagnating for the first time in over five years.

This week, the main macroeconomic event will be the US Federal Reserve meeting, one of those so-called "live" ones, as it includes economic projections and  Powell's speech. The central bank is expected to raise rates by 25bps, something the market has priced in long ago. Whether the market decides to lift odds of a fourth hike in December or take them down after the meeting's outcome, will seal the fate of the greenback, as it will define if the currency will be able to recover on self-strength, or only in risk-averse environments as safe-haven.