14/ 09/ 2017

US Tax Anticipation Drives the Dollar While BOE Prepare for the Super Thursday

The US Dollar held on to its overnight strong gains led by renewed optimism over the US President Donald Trump's pro-growth economic policies. The news that a new US tax plan outline would be announced by the end of this month overshadowed disappointing US data, showing producer price inflation increased less than expected in August, and provided an additional boost to the greenback's ongoing recovery move.

Today brings a number of known market movers, begins with Swiss National Bank will release its latest Monetary Policy Statement, and markets are not really expecting any changes on the bank’s accommodative stance. There’s more anticipation for the latest Bank of England policy statement, which follows next. Apart from the BoE announcement, investors will also confront the release US CPI print, which would drive market expectations over the Fed's next policy move and eventually drive the greenback ahead of next week’s FOMC meeting.

13/ 09/ 2017

Will the Pound move Higher ahead of BOE Meeting?

The darling of the week, as far as the markets are concerned, has to be the pound as it rose higher on stronger inflation data and broke to a 11-month high during the course of yesterday. Meanwhile, September U.S. Dollar Index futures finished relatively flat on Tuesday, which may be a sign that the upside momentum driving the market higher this week may be waning. The index is being supported by a huge bounce in U.S. Treasury yields. Position-squaring and profit-taking after a recent steep break and ahead of this week’s U.S. inflation data may also be behind the rally. Receding worries about North Korea and Hurricane Irma also encouraged investors to unwind bearish bets against the Greenback, lifting investor risk sentiment.

For the day ahead, the German CPI final, Swiss PPI, Eurozone industrial production and employment will be released in European session. But UK data will be the focus again with employment data featured. US will release PPI later in the day.

12/ 09/ 2017

BOE talk begins with UK Inflation and the Pound in Focus

The US dollar had a strong start to the new week, reversing some of the massive losses it suffered in the previous week. The US Dollar was seen consolidating overnight strong gains, supported by receding worries over N. Korea and Hurricane Irma, with most major currency pairs lacking any firm direction and holding within a narrow trading range. With the market digesting the UN's decision to impose fresh sanctions on N. Korea, a continuous unwinding of safe-haven bets, further reinforced by a strong recovery in the US Treasury bond yields, remained supportive for the greenback's recovery move.

Meanwhile, as the market awaits the rate announcement and statement from the BOE later on in the week which will determine its short-term direction. Policy makers will have to look into inflation data to be released later today which will certainly show a volatility in the financial market paticulary on pound. 

10/ 09/ 2017

Week Ahead | A Big Week for GBP with BOE Meeting & Inflation Data

The U.S. Dollar continued to slide on Friday, hitting a more than 2-1/2 year low against a basket of major currencies on falling expectations of another U.S. Federal Reserve rate hike this year. In the meantime, the Euro, which represents 57% of the U.S. Dollar Index, rallied to another multi-year high in the wake of the European Central Bank’s interest rate and monetary policy decisions.

Talking about Sterling, the upcoming week will be an important one in UK. CPI will be released on Tuesday, followed by job data on Wednesday and BoE rate decision on Thursday. There is little chance for BoE to hike interest rate this time. The focus will stay on vote splits.