25/ 01/ 2018

Will ECB Draghi Say Enough to Kill Euro Rally?

It was another crushing day for the U.S. dollar with the greenback trading sharply lower against all of the major currencies. USD-sellers have been flowing into the markets yesterday, particularly after US Treasury Secretary S.Mnuchin favoured a weaker Dollar in his comments at the WEF in Davos.

Today’s focus is on ECB and Draghi. There won’t be any rate hike but There's no doubt in that Draghi will try to jawbone the currency by expressing his discontent with its rapid rise but that may not be enough to reverse the uptrend in the euro.

24/ 01/ 2018

USD Gets Hammered, with Stats Bringing the EUR and GBP into Focus

The dollar extended recent weakness against a basket of major currencies to hit a fresh three-year low on Tuesday, after the euro surged on consumer confidence data indicating strong momentum in the region's economy. Data from the European Commission showed euro zone consumer confidence jumped much more than expected in January.

The Euro has been trading mixed this week despite up beat confidence data. On the other hand, Sterling is lifted by hope of a good Brexit deal and is trading as the strongest one. 

Looking ahead, Eurozone PMIs and UK job data are the main focuses of today. Later in the day, US will release PMIs, house price index and existing home sales. However, we could expect only slight adjustments in the markets as investors will be focusing on tomorrow’s ECB Rate Decision and Monetary Policy Statement.

23/ 01/ 2018

Can the Dollar turn around its negative Tide?

A slow day to start the week with not much important data been released. The absence of strong data to support Dollar and US Government shutdown meant that major rival currencies continued their dominance on the opening day of the week with Pound being the best performer.

Today would be slightly busy day with Europe releasing their economic surveys which will give an indication on the business performance and economic outlook. Dollar is expected to turn around its negative tide today with the Government being reopened with several Governors voting to fund the bill until 08th Feb. 

21/ 01/ 2018

Week Ahead | Will Draghi drag the Euro down or unleash further upside?

The dollar continued to remain on the backfoot for another week. However, it was not a one-sided affair. The greenback did fight back to some extent though mixed housing data and the threat for a government shutdown loomed large. It is the bullish comments from some of the Fed officials as regards the economy that helped the currency put up a strong fight. The news from the previous week that China might move away from U.S. Treasuries continued to put pressure on the greenback. However, a correction was also observed, especially in USD/JPY pair. In the euro-zone, European Central Bank officials’ effort to use the strategy ‘talk-down-the-euro’ met with only partial success. As U.K.’s inflation data came out as analysts expected and some amount of calm prevailed on the Brexit front, the pound could stabilize a little bit.

This week brings us GDP from the US and the UK, Rate decision, Monetary Policy Statement and Press Conference in Japan and Europe and many other events await us in a busy week. Furthermore, The US. government shutdown happened after markets closed on Friday, and has yet to take effect.