04/ 01/ 2018

Dollar Gains Momentum ahead of Fridays NFP

The dollar snapped its recent decline and gained against majority of its peers on Wednesday due to short covering ahead of Fed minutes, upbeat U.S. manufacturing and construction data.

Even though FED acknowledged the growth of US labor market, there is worry on persistently low inflation. Hence future rate hikes would be on a gradual path while the inflation will be monitored.

Today is another busy day with several mid-tier reports from Euro zone, UK and USA. Investors will focus on latter half of the day where we will see US Jobs market data and business conditions data.

03/ 01/ 2018

Can the FOMC Meeting Minutes Save the Dollar?

The U.S. Dollar fell against a basket of major currencies on Tuesday, led by a stronger Euro. The move drove the dollar to a four-month low and the momentum at the close suggests more losses may be coming this week. The Euro is heavily weighted in the calculation of the U.S. Dollar Index so its moves have the biggest influence on it.

Looking ahead of the day, The U.S Dollar is trying to hold on and the FOMC meeting minutes released later today could provide some hope, though it’s going to come down to Friday’s nonfarm payroll and, more importantly, wage growth figures. On the data front, Swiss will release PMI manufacturing while UK will release construction PMI. Germany will release unemployment. US ISM manufacturing will also be a focus and a strong set of number is needed to give Dollar a life.

02/ 01/ 2018

Week Ahead | A Slow Start to 2018 with Focus on US NFP

The forex markets start rather slowly this week as, without any news, traders are staying in holiday mood. Nonetheless, US events will take lead later in the week with FOMC minutes, ISM Prices and Non-farm payrolls featured. Dollar was under tremendous pressure by the end of last year, partly thanks to negative US dollar index. The greenback will need some strong data to give it a life. Otherwise, Dollar index will keep going down which is already down 9.8% compared to beginning of 2017.

US events will be the major focuses as traders are slowly getting back to work after the holidays. ISM Price indexes and non-farm payrolls will be mostly watched along with few more mid-tier reports. FOMC minutes will also be scrutinized for how worried are Fed officials on slow inflation. Canadian Dollar traders will also look into job data to be featured on Friday.

28/ 12/ 2017

Euro: Biggest Winner of 2017

The American dollar was the worst performer this Wednesday ending the day lower against most of its major rivals despite positive pending home sale figures. The euro looks set to be the biggest currency winner of 2017, up more than 12% against the dollar and still rising as the year end nears.

The Pound also gained advantage over the news that Theresa May has won approval from for EU/UK trade talks to commence. 

Today and Tomorrow are the last trading days for 2017 with only US Pending Home Sales and Harmonized Index of CPI from Germany set to release.