23/ 07/ 2017

Week Ahead | Can the Feds turn the Tables?

The US dollar suffered for another week, with significant rise for Euro and Australian Dollar. The failed healthcare bill and the news that there will be a probe in to Trumps personal business also sparked the latest round of USD selling. The ground was already set by last week’s poor US data and Yellen’s caution. 

Euro reached the highest in nearly two years on Draghi’s failed attempt to be dovish. The Aussie reached for higher ground, helped by the RBA’s hawkish minutes. The pound had a harder time as inflation softened in the UK. 

But can the Feds turn the negative tide for Dollar with the all-important rate decision and monetary policy statement? This week also features consumer confidence, GDP, and durables from USA. 

20/ 07/ 2017

ECB Holds the Key for further Euro Support

Yesterday, markets remained in cautionary wait and see mode ahead of today’s high-risk events that lay in waiting. Even though US housing data came positive it did not support the already weak dollar.

Markets will be focusing on ECB events that are scheduled in the evening. There is probably a greater chance today that the ECB will disappoint as opposed to affirm the markets hawkish conviction, but even then,  the Euro should continue to go up given the US dollar weakness.

19/ 07/ 2017

A Setback for Trump means a slap on Dollar

The denied healthcare bill was a big setback for Trump which meant it was a bigger setback for the greenback as it casts doubt on the Trump Administration's broader strategies. Dollar could not find much support from US Import Price Index report as well. EUR was sailing above EUR/AED 4.23 levels comfortably while GBP could not truly gain momentum as negative UK inflation reports meant it had to somewhat stall it’s progress.

Today will be dull day in the markets with only a few low tier reports from USA which would not move the markets much. However anticipation will be building towards Tomorrows ECB Rate Decision, Press Conference and Monetary Policy Statement. 

18/ 07/ 2017

Failed Healthcare Bill sinks the Dollar

US Healthcare bill debacle triggered a wave of selling in the USD where investors were left to ponder if Trump would be capable of delivering his promise of better tax reforms for USA when he is incapable of handling the healthcare bill. While EUR skyrocketed to a 14-month high, AUD clocked a fresh 2 years high on the back of this news.

GBP will be in focus for today, as there will be number of reports coming from UK with regards to inflation. Later in the day focus shifts to, BOE Governor Carney’s speech which will be watched closely by markets for any impetus for UK economy.