28/ 08/ 2018

Euro Overpowers Dollar, Breaks Struggle for Momentum

Risk appetite took over financial markets following a dull start to the week, with US equities entering unchartered territory, weighing on the greenback. US session, and Trump's tweets enlightened the last trading session of the day. But regarding Canada, Trump also said that the best option would be either to make a separated bilateral agreement with the country or directly imposing tariffs on Canada. The US President claimed that the country and Mexico reached a new trade deal and that Canada will soon join talks.

Another bullish start for today in the equity markets, with a busy afternoon of stats out of the U.S to influence the USD.Outside of the data, noise from the Oval Office will remain a factor, with the U.S now expected to shift attention to Canada, favouring a bilateral trade agreement over NAFTA.

26/ 08/ 2018

Week Ahead | Trade Wars and Rate Decisions Keep Traders on Edge

The US Dollar was torn between the Fed’s hawkishness and Trump’s troubles last week, with trade also playing a role. President Trump was the center of attention. The week began with Trump criticizing the Fed once again for raising interest rates. He was disappointed that Chair Powell is not a “cheap debt” man. The focus then shifted to his legal troubles. Both developments weighed on the US Dollar. However, the FOMC Minutes were upbeat and signaled a rate hike. But in a speech on Friday at Jackson Hole, Fed Chair Powell said that he does not see the economy overheating nor inflation accelerating. In addition, despite ongoing talks, the US went forward with imposing the planned tariffs on $16 billion worth of Chinese goods and China retaliated with tit-for-tat measures. These two developments helped the greenback recover. On the other hand, Brexit talks will now go on continuously, and this helped the pound.

A busy economic calendar and a plethora of geo-political risks to drive the markets through the week, with the U.S President at the center of it all.

19/ 08/ 2018

Week Ahead | Trump, Trade, Powell and Policy in Focus

The crisis in Turkey continued engulfing markets. The nation that bridges Asia and Europe saw the local currency struggle and triggered fears about European banks and other emerging markets. The safe-haven US dollar and Japanese yen competed for the first place while other currencies were beaten. The euro, pound, Aussie, and others reached multi-month low or more. In general, the tightening of financial conditions has hurt a vulnerable Turkey but could hit others. The gradual hikes by the Federal Reserve eventually take their toll. The mood around Turkey and other emerging markets overshadowed economic indicators. The US Dollar continued raging and rallying amid the Turkish crisis and also trade concerns.

It’s a big week ahead for the markets as the traders will keep an eye if there will be correction and if will the trend continue. The Fed will have its say with the FOMC Meeting Minutes and the Jackson Hole Symposium.

16/ 08/ 2018

Dollar retreats on profit taking, Euro rebounds on Qatar aid to Turkey

The dollar was nudged away from a 13-month peak on Thursday as risk aversion eased and emerging market currencies bounced back on news that a Chinese delegation will travel to the United States late in August to hold trade talks. The news that the world’s two biggest economic powers, currently locked in a trade war, were showing a willingness to negotiate boosted investor sentiment after a worrying week.

Turkey on the other end has slapped an additional tax on imports of a broad range of American goods, the latest escalation in a standoff that’s brought ties between the two NATO allies to a breaking point. Turkey will impose an additional 50 percent tax on U.S. rice, 140 percent on spirits and 120 percent on cars. There are also additional charges on U.S. cosmetics, tobacco and some food products. The lira weakened Wednesday morning after an 8.4 percent jump on Tuesday. But the USD/TRY breaks below 6 after Qatar pledges to invest $15 billion in Turkey.

Looking ahead, UK retail sales and Eurozone trade balance will be featured in European session. Later in the day, US will release housing starts and building permits, Philly Fed survey and jobless claims.