16/ 07/ 2017

Week Ahead | The Dollar weaken further?

Last week, The US dollar was on the back foot on political and mostly monetary issues. Two major events that hurt the dollar was; Yellen’s Dovish Testimony in front of the senate and a news that aroused negative speculation between a meeting between Donald Trumps Son and a Russian Lawyer prior to US Presidential Election. Furthermore, weak inflation data and retail sales figures on Friday did not help the weakening dollar.

The economic calendar looks light in terms of Data from US hence markets will be eyeing on CPI, PPI reports and the most important interest rate decision from Euro zone while UK will also be in the spotlight with the release of CPI and PPI data. 

13/ 07/ 2017

Dollar weakens after Yellen’s Dovish Testimony

Dollar trades broadly lower as markets generally perceived Fed chair Janet Yellen's testimony as a dovish one. On Wednesday, U.S. Federal Reserve Chair Janet Yellen testified before the Senate Banking Committee on inflation, the Fed balance sheet and interest rates. Most Fed officials believe the current muted inflation figures are probably transitory, Yellen sparked a few concerns when she expressed concerns about inflation and hinted that perhaps it may not be transitory factors pressuring inflation.

Focus now shifts towards the German final CPI, US PPI and jobless claims later today, comments from Fed members will also remain in focus with Chair Janet Yellen's semiannual testimony continuing in the Senate followed by speeches from Evans and Brainard.

12/ 07/ 2017

A Big Day for the USD and the GBP, with Yellen and UK Data in Focus

After a particularly quiet start to the week, things will certainly begin to get interesting, with the markets looking ahead to this morning’s June claimant count and May unemployment rate and wage growth figures out of the UK, ahead of FED Chair Yellen’s testimony to Congress. There’s certainly plenty of confusion ahead of today’s data, with the markets showing the disappointment on Tuesday, following Broadbent’s silence on the UK economy and views on monetary policy.

The main event for today will Fed Chair Yellen’s semi-annual monetary policy testimony, along with the BOC as they will release its monetary policy report, interest rate decision and rate statement while having Press Conference.

11/ 07/ 2017

Central Bankers in Focus, with the Pound in the Spotlight

Headwinds have persisted in early trading for the Euro and Pound against the U.S Dollar. After moving higher early on Friday, both currencies started to lose value against the U.S Dollar upon the better than expected jobs numbers from the States. European equities however have done well and have continued their positive momentum yesterday as they released some data. Central bankers continue to dictate the direction of the respective currencies, macroeconomic data on the lighter side, with the pound likely to see the biggest moves through the day, while we will expect the Dollar to remain in recovery mode through to this afternoon’s stats.

Today’s filled with speeches, firstly, from UK Prime Minister Theresa May, focusing on the issues of the country's foreign policy followed by US FOMC Members to FOMC Commitee which they will offer their thoughts in rate-setting that could possibly give an impact to the greenback.