14/ 06/ 2018

Hawkish FOMC rolls over on trade war anxiety and Now It’s the ECB’s turn

The euro edged higher against US dollar on Wednesday after the Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes in the coming months. Two additional hikes are now expected by the end of this year, compared to one previously.

The greenback's bounce tied to the Fed's perceived hawkish stance faded as traders booked profits in advance of the European Central Bank's meeting on Thursday, where policy-makers may discuss the timing of winding down its 2.55-trillion-euro bond-purchase program.

Looking ahead, attention turns to the European Central Bank, UK retail sales will also be a focus in European session while Germany will release May CPI final. US retail sales will catch most attention later in the day, when import price index, jobless claims and business inventories will also be featured. 

13/ 06/ 2018

Trump-Kim Summits Boosted the Dollar across the Board with promises of Denuclearization and Sanction free North Korea

Euro declined against the Dollar on Tuesday as Dollar was boosted after data showed U.S Consumer Prices rose in May, matching analysts’ forecasts and reinforcing the view the Federal Reserve would raise short-term Interest Rates gradually.

Three major world’s top Central Banks the Federal Reserve, the European Central bank and the Bank of Japan are each meeting this week.

The Federal Reserve holds a two day meeting started on June 12th and it is widely expected to raise interest rates for the second time this year. The focus is on whether the Central will hint at raising rates a total of four times in 2018.

12/ 06/ 2018

Markets Steady as Kim Meets Trump, UK Job and US CPI to Guide

The U.S. Dollar was mostly rangebound against a basket of currencies on Monday as investors prepared for the widely anticipated summit between U.S. President Donald Trump and North Korea President Kim Jong-un.

Against individual currencies, the dollar lost ground to the Euro and the Australia Dollar, buy was able to offset those losses with gains versus the Japanese Yen, British Pound and New Zealand and Canadian Dollars.

The dollar performed surprisingly well in the wake of heightened worries over a global trade war following a disagreement at the G-7 conference in Canada over the week-end. Overall, the U.S. Dollar was supported by expectations of a 25-basis point rate hike by the Fed on Wednesday.

Looking ahead, traders are preparing for US consumer inflation and UK job report that will be released later today.

10/ 06/ 2018

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

While trade tension between the US and its allies dominated the headlines last week, Euro emerged as the strongest major currency. Receding Eurozone internal political risks was a key factor. German 10-Year Bond Yield hit as high as 0.52, comparing to 0.186 low just two weeks ago, before closing at 0.45. Expectation of a decision by ECB on it asset purchase program is another key factor pushing up the common currency. On the other hand, Japanese Yen ended as the weakest one as major US and European yields recovered. Dollar followed as the second weakest.

It’s a busy week ahead, with the markets looking forward to ECB, FED and BoJ monetary policy, the North Korea – U.S Summit, key stats out of the UK, Europe and the U.S and then there’s the G7 Summit that concluded on the weekend.