04/ 09/ 2018

US Dollar and Trade Tension remains in Focus

US Dollar strengthened against the rivals since late session of Monday even when US Markets were closed due to observance of US Labor Day. Mainly investors moved their scope towards safe haven assets amid tensions around global trade and straining emerging market currencies. Fears of a hit to global growth from U.S. President Donald Trump’s “America First” protectionist policies have kept markets in a state of heightened anxiety for much of this year.

Sterling was affected widely across the board due to further looming issues in negotiation taking place between Euro Zone & UK officials. Chief Brexit negotiator Michel Barnier’s comments stoked worries over the progress of Brexit negotiations further. Analysts believe if Turkey & US continue on their Trade related conflicts markets will further move aggressively towards the safe haven markets.

Looking ahead, trade talk will continue to be the area of focus through the day.

03/ 09/ 2018

Week Ahead | US Payroll and looming Tariffs on the Spotlight

The US Dollar eventually edged up against most currencies, apart from the yen last week.

Markets cheered the deal reached between Mexico and the US. While Canada’s participation is still in the air. The mood soured later in the week with trouble in emerging markets and concern about global trade. It is going to be a different story with China in the upcoming week. Brexit negotiations with a more upbeat tone after Chief EU Negotiator Michel Barnier said the EU will offer the UK a “deal like no other country.”

Looking ahead of the week, central banks, Trump and Trade will be in focus, with economic data to give some idea on the effects of trade tariffs and Nonfarm Payroll report as the primary event of a busy week.

30/ 08/ 2018

Trade Talks Keep the USD in Focus

The Euro was little changed against dollar yesterday as lingering China-U.S. trade tensions continued to weigh on the market. The dollar was stagnant in a tight range after touching a four-week low overnight as optimism over the U.S.-Mexico trade deal gave way to caution ahead of an upcoming deadline in the Sino-U.S. trade dispute. The deadline for public comment on U.S. President Donald Trump's tariffs on another $200 billion of Chinese goods is on Sept. 5, with the new measures possibly taking effect next month.

Looking ahead, economic data out of the Eurozone includes prelim August inflation figures out of Spain and Germany, along with the all-important August unemployment numbers also scheduled for release out of Germany.

For Sterling, it’s another quiet day ahead on the data front, leaving the Sterling reacting to Brexit chatter. Across the Pond, economic data out of the U.S includes the weekly jobless claims and July personal spending figures, with the FED’s preferred Core PCE Price Index numbers for August also scheduled for release. While we can expect some influence from the personal spending numbers, the inflation figures will likely be the main driver for the Dollar, anything in line with or better than forecasted being Dollar positive.

29/ 08/ 2018

Market shifts focus to Trump’s New NAFTA deal & Brexit negotiations

The euro was little-changed against dollar on Tuesday as investor optimism that a U.S.-Mexico deal will help avert a global trade war boosted appetite for riskier assets.

The United States and Mexico agreed on Monday to overhaul NAFTA, putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-country pact.

Britain's pound declined against the dollar on Tuesday after British Prime Minister Theresa May played down the consequences of Britain leaving the European Union next year without securing a deal with the bloc.

Failing to reach an agreement on trade relations with the EU "wouldn't be the end of the world," May told reporters.