10/ 07/ 2017

Week Ahead | Will Janet Yellen provide additional support to the Greenback?

The U.S. Dollar posted a two-sided trade last week but still managed to close higher for the period. The US Dollar index started the week strong before hitting its high for the week with the release of the minutes from the Federal Reserve’s June meeting. After a two-day set-back, the index clawed back to positive after the release of the stronger-than-expected U.S. Non-Farm Payrolls report on Friday.

The key events in the week ahead will help speculators to get further clues about global economic growth. UK unemployment rate and Claimant Count change will be published on Wednesday. The BoC will publish its interest rate decision on Wednesday as well. On Thursday, Janet Yellen will testify before the Congress and on Friday, US CPI along with retail sales will be published.

06/ 07/ 2017

FOMC Minutes Kill the USD Rally

Greenback remains the strongest major currency for the week, however, USD lost momentum after the release of the latest Federal Reserve minutes overnight. Taking a look at a Euro yesterday it was little change against the US Dollar as dollar briefly performed under expectation. The USD is currently walking a fine line as it deals with rising geo-political tensions and the important developments in its monetary policy.

The upcoming ECB minutes release today could provide something to cheer for the hawks. In addition, tomorrow’s NFP data will likely be used to give further endorsements to the Fed’s current tightening policy.

05/ 07/ 2017

The Dollar holds onto the Reins ahead FOMC Minutes

The dollar continued to hold steady during the course of yesterday as there is a holiday in the US for Independence Day and the volatility and the liquidity has been low so far. It was felt that the dollar bears can make use of that opportunity to push the dollar lower against the other currencies but that has not happened so far and the dollar has been able to hold on to its gains since Monday.

The markets wait in anticipation of a spate of news and data that includes the FOMC later today, that could determine the short-term direction for the dollar.

04/ 07/ 2017

Skepticism of US Federal Reserve Interest rates Dominates FX Market

The dollar rose broadly on Monday, after upbeat U.S. economic data sent Treasury yields to seven-week highs. The dollar rose against a basket of currencies after the release of a stronger than (ISM) report for June. Traders noted that the rise in the dollar came about from direct demand for the Greenback and not weakness in the other currencies. This is because it may have fallen too far, too fast at a time when the Federal Reserve was strongly considering hiking interest rates later in the year.

US markets will be closed for Independence Day, and the first item on the schedule will be coming from Australia as they release their retail sales report followed by RBA Interest Rate Decision & Rate Statement.