06/ 12/ 2017

Dollar resumes rise on U.S. tax reform hope

The Euro declined against the Dollar yesterday on optimism of the US Tax Reform bill which is due to be announced by this week or next latest. But as observed previous weeks as well this upward trend was only a short term growth and it was cut back once the US Markets opened and their reports showed significant stagnancy over the past months in terms of Economic Data. 

Pound had a good start to the day with positive hints of a deal been agreed by both UK and EU by the end of this week. however reports coming from Ireland mentioned that they would not accept any Brexit deal that saw Northern Ireland diverging either economically or politically from the United Kingdom.

Today's focus will be on ECB Non Monetary Policy meeting while investors will also be keen on latest developments on US Tax reform.

05/ 12/ 2017

"Trump's Travel Ban Slumps the Dollar"

The dollar was broadly higher against its peers on Monday after the U.S. Senate approved a tax bill over the weekend boosted market optimism. However the gains were temporary as US Supreme Court decided to impose a Travel Ban for 6 Muslim nations which turned the Dollar tide down.

News coming on Brexit talks is that despite failing to achieve a breakthrough on Monday, British Prime Minister Theresa May is confident of getting an agreement with the European Union on moving to the second phase of Brexit talks.  Furthermore from Germany, Angela Merkel and SPD leader Martin Schulz would start talks about forming a government later this week.

Today would also be a quiet day with 2 mid-tier reports from Euro zone and USA. However markets will be reacting to any political developments from USA.

03/ 12/ 2017

Week Ahead | Will Non-Farm Payroll Save the Dollar?

The first half of the last week, dollar gained against other currencies after the highest new home sales data in a decade was announced. Fed Chair Janet Yellen’s upbeat comments, Jerome Powell’s message that he will largely continue with the Fed’s current policies, and imminent tax cuts further supported the U.S. dollar.

However Friday’s news that former NSA chief Flynn will testify against Trump caused a loss of confidence of the Current President in power. The pound managed to stand out and defy the dollar on the back of an optimism related to Brexit. However, the euro suffered a setback because of lower inflation data and the decision by the OPEC to extend cuts in oil production cuts.

The key releases scheduled for the upcoming week include the US Non-farm payrolls and rate decisions from Canada and Australia. 

28/ 11/ 2017

BoE Reports, Tax Reforms and FED Talk to Drive the GBP and USD

Trading remains rather quiet in the forex markets this week so far. Dollar was supported by upbeat comments from Fed officials regarding a new term rate hike. Jerome Powell also indicated that he preferred continuity when taking over the Fed chair job. But Dollar traders stay cautiously watching how the Republican's tax plan will work out in the Senate this week. Meanwhile, Euro also lost some upside moment ahead of the grand coalition talk between CDU/CSU and SPD.

Today’s focus shifts to the BOE Financial Stability Report (FSR) and Governor Mark Carney’s subsequent presser. Later during the day, the release of CB's consumer confidence index, along with comments by New York Fed President William Dudley and the Fed Chair Designate Jerome Powell, would influence sentiment surrounding the greenback and also provide some fresh impetus.