17/ 05/ 2018

Euro Meltdown – Weak Inflation & Political Jitters

The Euro had another disappointing day as weak inflation data and political jitters in Italy dragged the common currency down to yearly lows. The two Italian parties who were struggling to form a coalition government said to have asked ECB to forgive Euro 250 billion debt.

The Pound reverted some of the losses when news broke out that Britain will ask European Union that they are prepared to stay in the customs union beyond 2021. US data was mixed, however thanks to rising US treasury yields the dollar has managed to stay high against all major rivals.

Today will be quieter in terms of macroeconomic releases from UK and Euro zone. Australia will release their jobs report while US will release the usual weekly unemployment data.

16/ 05/ 2018

Dollar keeps rising thanks to US Yields and Upbeat Data

The Dollar bulls kept rallying around US Treasury Bonds and upbeat data. Investors seem more confident on dollar as improving economic indicators revived expectations that the Fed might need to raise interest rates more aggressively and remained supportive of the prevailing bullish sentiment surrounding the greenback.

Surprisingly, news from North Korea citing that they will never engage in economic trades with the US in exchange for giving up its nuclear programme did not push the dollar down.

Today macroeconomic calendar will be important for Euro zone as Inflation figures and Draghi’s Speech will be looked upon for some immediate respite for Euro bulls. From US we will see the release of housing market data which may influence some short-term price actions.

15/ 05/ 2018

US Retail Sales could make or break the Dollar

Dollar had a slow start to the week as rival currencies gained slight advantage in the beginning of the day. However, the modest gains were reverted in the US afternoon thanks to the rise in US treasury yields. Specially the FED member Bullard’s speech prompted markets towards dollar as he said that FED is on right path to increase interest rates gradually.

Today will be quite a busy day in terms of macroeconomic releases, with German and Euro Zone Quarter 1 GDP revisions, and US Retail Sales for April. The Retail Sales report is crucial in understanding the direction of the US economy and comes at a testy time for the US Dollar. The German ZEW survey will be also out, with the deterioration on business sentiment seen stalling in May.

13/ 05/ 2018

Week Ahead | Eurozone Inflation and GDP Figures in Spotlight

The dollar yet again had an exciting week amidst poor inflation data. Trump abandoning the Iran deal provided fresh support to oil prices in return sending the greenback up. However, US inflation came at 2.1% when market prediction was 2.2%, putting downward pressure on dollar.

Dollar decline was limited due to higher treasury yields and positive mood among US equities' traders, as government bond yields ended the week on a higher note. A dovish set of events by Bank of England sent the pound further down while mixed data from Euro zone kept the Euro low.

This week features several top tier data releases from USA, Euro zone and UK. Highlights will be US Retail Sales and housing data along with Euro zone Inflation data and GDP figures.