24/ 05/ 2018

Trump Strikes Again with Import Tariffs on Automotive, Will It Impact the Bulls?

Stronger FOMC Meeting minutes accelerated  a stronger buying interest around the US Dollar, which rose to its best level of the year on Wednesday. The officials appeared to confirm market expectations over a June rate hike but signaled that rate hike pace might not need to accelerate to catch up with inflation.

The minutes showed the Fed would tolerate inflation rising above its goal for some time and gave a reason for the USD bulls to take some breather, especially after the recent relentless rally. The pair staged a minor recovery during the Asian session on Thursday but seemed lacking any strong conviction. Analysts believe that Trump’s Latest Outlook about Automotive Import Tariffs could be a Neck Breaker for the Bulls after its Rallying Boost over the past few days.

23/ 05/ 2018

Inflation and FOMC Minutes to Drive the GBP and USD

The greenback edged lower against a basket of currencies on Tuesday after posting six consecutive higher closes. The catalyst behind the move was a dip in Treasury yields, position-squaring ahead of the release of the Fed Meeting Minutes on Wednesday and general nervousness over the whether the dollar rally had run its course.

Looking ahead, it’s a busy day in the markets, with geo-political risk gripping ahead of a busy economic calendar, Eurozone and U.S PMI numbers, UK Inflation figures and the FOMC monetary policy meeting minutes all due out today.

22/ 05/ 2018

US Dollar Aims to Extend Rally on FOMC Minutes, Powell Speech

Sterling entered the new week on the back-foot Monday, falling below a key technical level against the US Dollar as the greenback advanced and markets shunned the British currency in the wake of the latest developments in UK politics. Pound Sterling was among the biggest fallers in the face of the strong greenback as markets steered away from the currency in light of reports the Scottish government is preparing a fresh push for independence and amid speculation over another possible general election in the UK this August.

The dollar index continued rising today after a statement from Treasury Secretary Steven Mnuchin who said that the trade war between the US and China was on hold. The dollar opened the day with a strong footing that anyway diluted as the sessions went by, ending the day mixed against its major rivals. In the case of EUR/USD, the pair reached a fresh 2018 low of 1.1716 before starting a bounce that was any way capped by selling interest around 1.1780.

20/ 05/ 2018

Week Ahead | Will the Markets keep investing in Dollar?

After the pause of the previous week, the dollar came back with a vengeance, reaching fresh yearly highs against its rivals. Euro continued to decline, but it’s decline was not all about the rising US Treasury yields. Soft GDP and inflation data left the Euro hanging on a cliff for another consecutive week.

The Sterling Pound enjoyed some demand at the beginning of the week, following local news indicating that the UK was preparing to remain in the customs union post-Brexit, sending the pound to a weekly high. However, the gains were later reverted after Theresa May mentioned that “the United Kingdom will be leaving the customs union” adding that they will negotiate future customs arrangements. 

This week features important data from Euro Zone, UK and US. Euro Zone and US preliminary Markit PMI, UK Retail Sales will be key releases. Minutes from the meetings of the FED and the ECB will also be out next week, and while investors will be looking there for clues on future central bank’s actions, seems unlikely those minutes will spur any surprises.