15/ 04/ 2018

Week Ahead | Geo Political Tensions on the Cards

The dollar had a rollercoaster ride last week amid better than expected economic data and geopolitical tensions. The Syrian attacks seems to have taken center stage as many countries such as US, UK and France have launched attacks against Syria. Furthermore, trade tensions seem to have eased as US and China has agreed to negotiate terms.

In the euro-zone, mixed messages from the ECB helped the euro recover while weak UK manufacturing production slightly hurt the pound. This week consists of US retail sales, housing data, euro zone inflation and Rate decision from Canada. However, developments from geo political tensions between US and Russia along with how other countries react to Syrian attacks will be the key market mover for this week.

12/ 04/ 2018

Trump Creates Further Chaos for Dollar

Yesterday the Greenback lost more ground as the sell-off in US equities prevented it from rallying on the back of hawkish comments on the FED minutes. Trumps warning to Syria over Twitter yesterday, caused panic among investors and dollar selling was inevitable as a result.

Today brings euro zone Industrial production figures, ECB meeting minutes and Unemployment data from US. Markets would scrutinize the ECB report for further support for euro after Draghi’s hawkish speech yesterday.

10/ 04/ 2018

Trade war tensions, falling stocks & treasury yields hurt the Greenback

The greenback came under selling pressure on Monday due to continued uncertainty on U.S.-China trade tension and intra-day weakness in U.S. stocks together with falling U.S. treasury yields also weighed on the dollar. Both Euro and Pound took advantage of Dollar's weakness while the Canadian Dollar also advanced thanks to a positive business outlook survey. 

Today seems a light day in terms of data as we will only see PPI figures from USA. However developments between US – China Trade war is likely to move the markets.

08/ 04/ 2018

Week Ahead | Can the dollar continue higher?

The Greenback had an excellent run towards the end of first quarter with strong ADP Payrolls data. It continued its recovery against its major peers, clawing back lost ground, regardless of the turbulence in stocks and the worsening tensions around trade. However last Fridays disappointing jobs number pulled the dollar down to its levels in the beginning of last week.

The pound has strengthened since Britain last month agreed terms with the European Union for a Brexit transition deal and the Bank of England indicated that interest rates will rise in the coming months.

The big-ticket items on the economic calendar for the upcoming week are scheduled for release on Wednesday. March inflation data will be released early morning in the U.S. and the minutes of the Fed’s rate hike meeting in March is due to be published later in the day.