11/ 09/ 2018

Sterling on Centre Stage with Dollar pressured on Sell off due to Growing Trade Tensions

The euro and sterling rose against the dollar on Monday after the European Union's top negotiator said an agreement for Britain to leave the economic bloc might be reached in the coming weeks. The pound in particular had been under pressure in recent weeks on anxiety that Britain would exit from the EU without any formal arrangement.

Other major currencies stayed in tight ranges as Investors awaited development in International Trade Disputes, in particular on any U.S concerns to enforce more Tariffs on Chinese Imports & Trades. Dollar went on slight sell off due to Trade Tensions between the two economic giants.

Looking ahead, UK employment data will be the main focus in European session and Germany will also release ZEW economic sentiment.

10/ 09/ 2018

Week Ahead | Dollar back on the Centre Stage with FED, BoE and ECB in Focus

Economic data, Fed expectations, trade war, Brexit were among the biggest themes last week. Emerging market risks seemed to have abated. Dollar strengthened as usual on Trump’s escalating trade threats to other countries and ended as the second strongest. Sterling ended mixed after suffering much volatility on flip-flopping Brexit headlines.

Uncertainty is still the word of the week and while risk buy off & sell off has been put aside, last week’s Non-Farm Payrolls put the Dollar back on the Centre Stage and data has been quite encouraging in the US as American wages unexpectedly climbed in August by the most since the recession ended in 2009 and hiring rose by more than forecast, keeping the Federal Reserve on track to lift interest rates this month and making another hike in December more likely.

Looking ahead, It’s another big week for the markets, with Trump and trade in focus, while the BoE, ECB and Central Bank of Turkey deliver policy decisions.

06/ 09/ 2018

Dollar Stagnates ahead of Friday's NFP Figures

The euro strengthened against dollar on yesterday based on combination of positive factors. Italy’s reassurance to respect EU Rules on fiscal discipline eased market concerns and was evident from narrowing Italy-German 10 Year Bond yield Spike. Meanwhile sterling pound boosted triggered by positive Brexit News, exerted some sell off pressure on the US dollar and provided additional support to the Sterling & Common Currency of Euro as well. Trade deficit reports from US widened the disappointment the Weaker dollar along with looming deadline for New US Tariffs on $200 Billion worth of Chinese goods which ends today.

After taking several weeks off following the central bankers’ summit at Jackson Hole, Wyoming, Fed speakers will be back in the news over the next couple of weeks before they go into “quiet time” ahead of the next Federal Open Market Committee (FOMC) monetary policy decision on September 26.US data is the major focus today. ADP employment, jobless claims, ISM services and factory orders will be featured. 

05/ 09/ 2018

Trump's Tariffs Policies bolstered the Dollar strength against Rivals

Dollar boosted after data showed that U.S. manufacturing activity accelerated to a more than 14-year high. U.S.-Canada trade talks ended on Friday with no deal to revamp the North American Free Trade Agreement (NAFTA) after Trump told Congress he would sign a bilateral trade pact with Mexico. This comment pushed CAD off the Edge over to a 6 Week Low.

Britain's pound trimmed some losses  against the dollar on Tuesday after Bank of England Governor Mark Carney stated that he will remain in his job beyond his planned leaving date, but concerns over Brexit kept a lid on the British currency's gains. Weak economic data, doubts over Prime Minister Theresa May's leadership and opposition from the European Union to Britain's proposals for exiting the regional bloc; All keeps the cable on a weaker side.

At the same time, JPY has regained its status as a safe haven and is getting investor confidence in a time of trade war and sanctions.

Trade war jitters continue to weigh on risk sentiment, with focus through the day being on the BoC and trade war chatter.