30/ 07/ 2017

Week Ahead | Can the Dollar break its Shackles?

Last week, the U.S. dollar lost further ground against a host of other currencies as a result of the less hawkish stance taken by the Fed and because of the failure on the part of the Trump administration to repeal and replace Obamacare. In the near term, the prospects for the U.S. dollar remain clouded as the latest machinations of Trump may only contribute to increasing political uncertainty. However, business and confidence are elevated, the economic indicators better, and the labor market is continuing to tighten.

This week brings us important events from UK specially. Which involves BOE Interest Rate Decision, Meeting Minutes and BOE Governor Mark Carney’s Speech. Markets will also be looking forward to Euro zone GDP. Consumer Price Data and ISM Manufacturing, ISM Prices, Non-Farm Payrolls and Unemployment Rate from USA.

27/ 07/ 2017

Dovish FED Weakens the Dollar

The little changed FED statement maintained a dovish uncertainty. The Interest rates were kept unchanged while there were no positive hints with respect to inflation and balance sheet reduction. This resulted in broad based dollar selling.

Now the attention shifts to USA where few key reports such as Initial Jobless Claims, Continuing Jobless Claims and Durable Goods will be released today while markets will be also looking forward to US GDP figures on Friday. 

26/ 07/ 2017

Will the Feds Bring their “A” Game?

Euro had a decent day with the release of IFO surveys which indicated that euro zone economy is growing and healthy. Pound also managed to get some momentum with the release of negative Housing data from US which resulted in a wave of USD selling.

However, Dollar found a bit of comfort with US 10 Year treasury yields rising to 2.34% with the news of Saudi Arabia reducing oil export and the news that a Republican senate will reopen the healthcare bill debate.

Today’s main event will be FED Monetary policy statement. Fed is expected to keep the interest rate unchanged however investors will look for clues on how FED will acknowledge the decline in inflation and reduce its assets purchasing program.

25/ 07/ 2017

Markets on Watch and Wait Mode Ahead of Fed Events

Negative figures on market conditions in Germany might have stalled the Euro march, but it wasn’t enough for Dollar to take any advantage even though US had some better than expected market conditions reports.

Most markets will be on Watch and Wait mode today ahead of Tomorrows Fed Events. During the day, there will be few Surveys done on Current market conditions and expectations in Germany. The day will end with Housing price index from USA.