08/ 10/ 2017

The week ahead: FOMC Meeting Minutes & ECB President Draghi speech

Dollar ended as the strongest major currency last week as economic data released affirmed a December Fed hike. The surprised contraction in non-farm payroll was offset by strong wage growth. However, the greenback pared back some of its gain on resurgence on North Korea risk. On the other hand, the British Pound suffered broad based heavy selling as there were increasing calls for Prime Minister Theresa May to step down, in the crucial time of trade negotiations with the world. In spite of political uncertainties in Catalonia, Euro showed much resilience and ended the week mixed only. 

Looking ahead of the week remains on the greenback with the FOMC minutes, US retail sales and the all-important inflation figures with ECB President Draghi Speech are the key things to watch ahead. Politics might overshadow economic data again.

05/ 10/ 2017

ECB minutes and FED Talk to Drive the EUR and USD

The U.S. Dollar weakened against a basket of currencies on Wednesday as investors positioned themselves ahead of Friday’s U.S. Non-Farm Payrolls report, while reacting to fresh economic data and a speech later in the session by Fed Chair Janet Yellen. Wednesday’s weakness did nothing to diminish the strong upside bias that has developed recently. Improving U.S. economic data along with the prospect of U.S. tax reform and rising expectations that the Federal Reserve will raise rates a third time in December have boosted the Greenback in recent weeks. 

Heading into Thursday, the EUR and GBP traders gear up for the ECB monetary policy meeting minutes due out later today. Hence, attention turns towards the US jobless claims, trade balance and factory orders data for fresh trading opportunities. Among the central bankers’ speeches, the FOMC members Powell and Harker will speak ahead of the BOE MPC members McCafferty and Haldane speeches.

04/ 10/ 2017

Central bankers in the Spotlight

The dollar weakened slightly against the euro on Tuesday as investors squared positions after a three-week greenback rally, and before three days of heavy data culminating in Friday's U.S. employment report for September. Stronger U.S. data along with the prospect of U.S. tax cuts and the likelihood of an interest rate increase in December have boosted the U.S. currency in recent weeks.

Looking ahead of the day, speeches from the major central bankers’ will be closely eyed, with ECB’s Draghi’s speech at the inauguration, followed by BoE Dep Gov Sam Woods gives a Speech at Mansion House, London. From US, Fed Chair Yellen is scheduled to speak at the Fed Reserve Bank of St. Louis, Volatility in the markets can be expected during their speech because traders make an attempt to decipher clues on the direction of interest rates in the future.

03/ 10/ 2017

Dollar Gains on Political Uncertainty

The U.S. Dollar posted solid gains on Monday, driven by political uncertainty in Europe and stronger-than-expected domestic data. The Greenback was boosted early in the session after violence in Catalonia fueled anxiety over political risk in the Euro Zone. This weighed on the Euro. The dollar was also underpinned by data showing that U.S. factory activity surged to a more than 13-year high in September amid strong gains new orders and raw materials. Traders also cited the Trump Administration’s proposed tax code changes and higher expectations of a third-rate hike by the Fed as contributing factors to Monday’s rally. U.S. Treasury yields also rose above last month’s levels, making the U.S. Dollar a more attractive investment.

Heading into Tuesday, investors must also brace themselves for other key events which will begin with the Rate Decision from Australia, followed by reports from UK Construction PMI, and Producer Price Index from Eurozone.