28/ 02/ 2018

Powell's Testimony Fuels the Dollar

In what was hyped as the most important event of the week, dollar emerged as the winner thanks to positive comments on the US economy made by FED Chairman Jerome Powell. All major currencies dropped lower against the Dollar while the Euro suffered the worst by falling almost 1%.

Today’s key reports will be German jobs data, Euro zone inflation data and US GDP figures along with Home sales data. It would be interesting to see if the US data would support the comments made by Powell to further strengthen the dollar.

27/ 02/ 2018

Markets Gear up for Powell’s Testimony

Yesterday the pound advanced against a weaker dollar with the expectations of Interest rate hikes in UK. Mario Draghi’s testimony did not move the markets in Euros favor as euro zone political uncertainty is tipped to rise over the weekend with Italy’s election on Sunday.

Today we will face what is touted as the ‘Event of the Week’ as Jerome Powell will make his first appearance as the FED Chairperson where he will give a testimony to the House Financial Services Committee. 3 main things markets will look forward to in his speech would be; Powell’s take on recent market developments, Outlook on inflation & growth and his position on more rate hikes.

25/ 02/ 2018

Week Ahead |Powell’s Testimony and Key data from US

Last week’s FED monetary policy report failed to have any significant impact on the Greenback as the report did not provide much fresh insight against market expectations. However, Euro and Pound extended some losses due to a stronger dollar and soft economic data.

This week is packed with major data and key speeches from both Euro zone and USA. Main focus will be on Jerome Powell’s Testimony on the economy and FED’s monitory policy along with key data releases from USA which will be closely monitored for fresh impetus.

22/ 02/ 2018

Hawkish FED strengthens the Dollar

Dollar jumps overnight after hawkish FOMC minutes and remains the strongest one for the week. Markets sentiment have shifted much since the start of the year. Back then, most doubted whether Fed would really hike three times this year. After a string of solid data and yesterday's minutes, traders are now talking whether Fed could hike more than four times.

Looking ahead, ECB minutes will be the main focus of the day that which could provide some support for the GBP and EUR.  Though for now, the Green is back and making some noise.