06/ 05/ 2018

Week Ahead | Will the Dollar hold on to its Gains?

The Greenback enjoyed another week of significant gains when at times defying news and data could have turned it the other way. On Friday however the dollar struggled a bit when NFP and wages slowed down, but an optimistic market sentiment that the FED will clearly increase the interest kept the dollar intact and topped to another week high as the markets closed on Friday.

Euro found no support as quarter one GDP figures disappointed the markets while disappointing data and negative developments on the Brexit front put further pressure on the pound.

Even though this week looks light in terms of data and economic events, the week features the all-important rate decision and monetary policy statement from Bank of England while US Inflation figures will also play a key role in moving the markets.

03/ 05/ 2018

Dollar still strong amidst a dovish FED Statement

The US Dollar got once again market's favor, underpinned by strong US data and rising yields while neglecting a dovish FED statement. Euro on the other hand suffered another drawback as first quarter GDP figures didn’t impress the investors. Sterling slipped towards its lowest level since January as a stronger Dollar and concerns about Brexit related risks along with expectations for Bank of England interest rate hike next month tumbling after Carney’s Dovish comments.

The FED kept the interest rate unchanged, as widely expected while their statement showed little aggressiveness. There were no hints of a June rate hike but mentioned that inflation will run near their 2.0% target in the medium term.

Euro zone Inflation figures will be the key market mover today as this will have an effect on ECB’s bond buying program. US will also release few mid-tier reports related to imports-exports and manufacturing sector.

02/ 05/ 2018

Dollar Strong ahead of FED Event

The dollar was once again the overall winner, extending its gains to multi-month highs against most of its major rivals. Even though ISM Manufacturing came under market expectations, USD got a lot of support from the Fed’s comments on more rate hikes than originally priced in by the market.

Today is the biggest day of the week, as FED will release their Monetary Policy statement. Further support is expected from ADP report as well. From Euro zone we will see the release of GDP Report along with Unemployment rate.

01/ 05/ 2018

Another Day, Another Win for Dollar

The dollar and the treasury yields continued the upward momentum yesterday as traders waited for key economic data later this week. Worse than expected German data fueled another decline for Euros while the Pound also fell after hardline statements from EU negotiator and Irish Prime Minister putting UK Prime Minister Theresa May in troubled waters.

Today some of the markets will be closed due to Labor Day holidays, however mid-tier data will be released from UK, Canada and USA. UK Manufacturing figures will be key for Pound while better than expected US Manufacturing data could push the dollar further upwards.