07/ 03/ 2018

Trump Hits the USD with Tariff Talk, as Cohn Heads for the Door

The U.S. Dollar broke sharply against a basket of major currencies on Tuesday as investors reacted to a couple of key events including talks between North and South Korea, and the sudden resignation of a White House economic adviser. This report made the U.S. Dollar a less-desirable asset.

Today is an important day for Canada and Europe. GDP data is going to come today ahead of ECB Interest rate decision and Monetary policy statement on Thursday. From Canada we will see the interest rate decision and Rate statement.

06/ 03/ 2018

ITALEXIT Seems Inevitable

Yesterday, the euro dropped slightly against the Sterling and Dollar on the back of talks about a referendum which will take Italy out of the EU. For the time being, the Euro's uptrend remains intact but a coming together of the Five Star and League anti-establishment parties, in a coalition government in Italy, would be likely to upset markets.

The German Grand coalition is seen as favorable to the euro and the euro zone in general, but it would be interesting to see for how long it can support the euro. Today is a light day in terms of data releases, but speeches from FED William Dudley and MPC Member Haldane may move the markets.

04/ 03/ 2018

Week Ahead | ECB and Nonfarm Payrolls

The greenback fell against most currencies on Friday as Trump proposed to impose heavy tariffs on Steel and Aluminum imports which may lead to a trade war that would prove damaging to the US Economy. Before his comments the Dollar held firm throughout the week, as FED Chair struck positive comments about the economy in his testimony while the Euro slipped 5 weeks low against the Dollar.

Sterling had a rough start to the week as UK and European Union failed to agree on smooth Brexit transition deal. But the sudden Dollar weakness along with an assuring speech from UK PM Theresa May on Friday, meant that Sterling gained some positive momentum towards the end of the week.

The upcoming week starts with the results of Italy’s parliamentary elections. This event could have a significant impact on the euro. Furthermore, key events that could move the markets would be German SPD coalition vote, ECB Meeting and Fridays Non-Farm payrolls.

01/ 03/ 2018

Are You Ready for Powell Testimony Round Two?

The Greenback is making serious gains as it continued its upward momentum on the back of positive comments from Powell and better than expected data for the second day in a row. However yesterday gains were much higher than the traders had expected as the US stocks performed above par and the US dollar index was able to extend its rebound further to hit a new one-month high.

Sterling was the day's worst performer, losing nearly 1% of its value against the U.S. dollar. Brexit negotiations took a turn for the worse and has quickly become a political crisis for Prime Minister Theresa May with a draft issued concerning northern Ireland after Brexit.

Today brings us more data releases favoring the Dollar along with the final phase of FED Chair Powell’s Testimony this time to the US Senate Banking Committee. As Powell has already made it clear to the House committee that heightened market volatility will not stop the Fed from raising interest rates as it sees fit, it is likely that he will deliver yet another hawkish statement to the Senate committee.