01/ 02/ 2018

Dollar rebounds a bit, thanks to hawkish FED

The U.S. Dollar finished a bit positively thanks a hawkish FED monetary policy statement. The dollar was under pressure early in the session, but rallied after the Fed released its interest rate decision and monetary policy statement. However, the index still closed lower for the session because there weren’t enough buyers to support the gains.

Manufacturing data will be the key focuses today. Swiss will release PMI manufacturing, retail sales and SECO consumer confidence. Eurozone will release PMI manufacturing revision. UK will also release PMI manufacturing. From US, ISM manufacturing will be featured, together with Challenger job cuts, non-farm productivity, jobless claims and construction spending.

31/ 01/ 2018

Trump Pins back the USD, will the FED do the same?

The forex markets remain generally in consolidation mode today. US President Donald Trump's State of Union address provides little inspiration. Nonetheless, the soft tone of Dollar in Asian session suggests that it might be ready to resume recent decline, probably subject to FOMC statement.

Looking ahead, FOMC rate decision is the main focus of the day. While it is widely expected that no change would be made in the monetary policy, the market focus is on the Fed's economic outlook and whether there are hints on the rate hike path.

In addition, Germany will release retail sales and unemployment. Eurozone will release Consumer Price Index and unemployment. Later in the day, US will release ADP employment, employment cost index, Chicago PMI and pending home sales.

30/ 01/ 2018

Trump Rouses the Dollar Bulls ahead of Today’s State of the Union Speech

The U.S. Dollar hovered above a three-year low hit last week against a basket of major currencies on Monday, picking up support from a steep rise in U.S. Treasury yields. The move in the yields likely spooked weak short-sellers into covering their positions. Additionally, short-sellers may have also pared positions ahead of President Trump’s first State of the Union address scheduled for late Tuesday and Wednesday’s release of the U.S. Federal Reserve Monetary Policy Statement.

Looking ahead, markets eagerly await the Eurozone prelim flash Q4 GDP report and German CPI release for fresh impetus on the Euro. The UK net lending to individual’s data combined with a few other minority reports will keep the GBP traders somewhat busy, as all eyes remain on the BOE Governor Carney’s speech due later today.

Also, of note remains the US CB consumer confidence and S&P/CS Composite-20 HPI y/y data, which will offer fresh incentives for the US dollar ahead of the key Trump’s address and FOMC decision due tomorrow.

29/ 01/ 2018

The Week Ahead | Can the Dollar stage a comeback with Fed decision & US jobs data?

The US dollar continued falling, struck by the US Treasury Secretary’s comments which went on to say that “a weak dollar is good for the US”. However, Trump had much more bullish comments in Davos, which helped Dollar to recover but that was a bit short lived.

This week features some key reports from Euro Zone and US. From US we have the last Fed decision and monetary policy statement by the outgoing Fed Chair Yellen along with consumer confidence and the Non-Farm Payrolls.  From Euro zone we will see GDP figures and Consumer Price Index. Furthermore, a speech by Trump will also take place on Wednesday.