22/ 10/ 2017

Week Ahead | Central Banks to Dominate the Market

Last week, the U.S. dollar registered some gains against most currencies around the world, but the gains were limited. The Federal Reserve is still set to raise rates in December, despite weak inflation. These are the hints we received from top Fed officials. The greenback enjoyed the news about progress on tax reform, even though the road is long. The euro managed to keep its head up despite a significant deterioration in the Catalan crisis. The pound suffered from the BOE’s lack of enthusiasm to raise rates and mixed data.             

A number of key events will be closely watched this week. The list include election in Japan on Sunday, Catalonia standoff and BoC rate decision. Nonetheless, the more market moving event should be ECB rate decisions where the central bank could announce to extending the asset purchase program but half the purchase size. Q3 GDP from UK and US will also trigger some volatility in the markets. In addition, there could be unscheduled news regarding US President Donald Trump's choice of next Fed chair, as well as news on the tax plan.

19/ 10/ 2017

ECB holds its Ground and EUR Rises Sharply

Euro rose sharply with further support from ECB on announcements to be made that they are following a “Lower for longer scenario” in terms of Interest Rates and QE extension plans by nine months at a rate of 30billion Euros. In a research paper released by Danske Bank showed that ECB also plans to end its QE purchases in the fourth quarter of 2018. Furthermore, disappointing US housing data also weakened the US Dollar which in return giving a boost to other major currencies.

Today’s focus will be on US Jobs reports and UK Retail Sales report.

18/ 10/ 2017

"Trumponomics" on highlight Strengthening the Dollar

Euro Slipped majorly yesterday against the US Dollar due to the speculation that US President Donald Trump was leaning towards nominating a Federal Reserve Head who would be more in support to raise Interest Rates at a faster pace along with all data released from US had a positive outcome than the predecessor years and ZEW Survey came negative for Euro.The current scenario of the Fed Seat is to be in favor of Stanford Economist John Taylor as the Head of Central Bank.

Analysts believe that ECB has sucked the life out Euro by not doing their best to make October a major decision making month on ECB’s debt crisis. With further looming Catalonia Crisis is putting the Euro on large sell off and analysts also believe if this trend continues with no positive statements from ECB or Draghi on solutions by 26th October Euro could decline sharply. 

Looking ahead, EU Extraordinary Summit is due today,  followed by Inflation Report Hearings from UK, Final reports for the day will be from US on Housing & Building Permits.

17/ 10/ 2017

Catalonia Independence Crisis Slows Euro

The U.S. dollar gained slightly on Monday as investors repositioned after disappointing inflation data on Friday sent the greenback to its lowest levels in more than two weeks, and with no major U.S. releases on Monday to sway direction. Furthermore, euro seems to be at a cross fire on many issues currently one of that was the Soured Debts across European Zone which is yet unsolved and now adding more oil to the fire will be the statement given by Mario Draghi on Friday showed us the significant effect it had on the Euro.

Today’s highlight will be the GBP Consumer Price Index and followed by a series of European Data like Consumer Price Index & Economic Sentiment of the European Market Confidence placed on by the General Public.