01/ 10/ 2017

The week ahead: US non-farm payrolls and European politics

The U.S. dollar was able to hold its gains as the third quarter of this year came to a close. In Germany, the election results showed that it will be a fractured parliament this time. This drove the euro down. Further, the escalation in exchange of words as regards North Korea contributed to driving negative sentiment among investors and this resulted in boosting the safe-haven yen. Towards the close of last week, the U.S. dollar was able to gain further ground on hopes that a massive reform in taxes is on the anvil, but failed to hold on to these gains.

Some of the key releases scheduled for the first week of the final quarter include the all-important Non-Farm Payrolls from the U.S., rate decision from Australia, and the jobs report from Canada.

28/ 09/ 2017

Greenback showing signs of strength

Market sentiment was positive towards the US Dollar overnight after US President Donald Trump proposed tax reforms were released. The plan included a cut to individual tax rates and lower company taxes from 35% to 20%. US data also supported the Greenback with US durable goods orders for August were on the stronger side of expectations bolstering expectations of an interest rate hike from the Fed in December.

Meanwhile, on the EUR-side of the story, the German CPI numbers will hold the key today, as the ECB President Draghi continues to remain worried over the inflation prospects. Also, of note for the major will be the US final GDP and jobless claims data that will be released ahead of the Fed speeches.

27/ 09/ 2017

Yellen Leaves Everyone Guessing

The German election setback continued weighing on Euro for the second straight session on Tuesday and dragged the EUR/USD pair below the 1.1800 handle to over one month lows. Also collaborating to the pair's bearish break below a 4-week old trading range was broad based US Dollar strength, which got an additional boost after the Fed Chair Janet Yellen reinforced market expectations for another rate hike move in 2017. 

Today first half will be dull with no economic reports coming up while the second half will busy with US Durable Goods and Pending Home Sales from US. Furthermore two speeches are scheduled from FED Presidents.

26/ 09/ 2017

Political Chaos Taking Center Stage

Euro took a hit in yesterday’s trading session on the back of shocking German election results that adds chaos to the stable euro zone political environment. Although German Chancellor Angela Merkel is expected to form a coalition and remain in government, it is still unsure as to which party would support her to form the majority. Pound also suffered with news coming in from UK that Chancellor Philip Hammond refused to back Theresa May as Conservative leader into the next election after Moody's downgraded UK's debt rating on Brexit uncertainties.

Today’s Focus will on Key speeches from FED Members including Janet Yellen. Meanwhile ECB’s Chief economist Peter Praet is also scheduled to deliver a speech on monetary stimulation and euro zone inflation.