28/ 05/ 2017

Week Ahead | Dollar starts to climb up

A relatively quiet week on the political front in the US allowed the greenback to correct. The meeting minutes from the Fed left the door open to a June hike where now its stands at 88% probability.

A comment by Merkel about a weak euro temporarily lifted it, while Pound slumped to a monthly low as recent polls show that Theresa Mays party only has a 5% edge over Labor party which means political instability is haunting UK ahead of the election.

As US dollar looks to shed its losses this week, the Non-Farm Payrolls, consumer confidence, and the Fed’s favorite inflation figure should help its cause.

25/ 05/ 2017

FOMC Puts Dollar Under Pressure

Yesterday FOMC minutes failed to attract any interest from the investors as it ended up pressuring the greenback. In Europe, German consumer confidence continued to improve according to the GFK survey indicating an improvement in economic expectations in the country. ECB's Draghi once again reiterated that the ongoing monetary policy has proven to be effective, and therefore there are no needs for a policy change.

Today’s focus will be on the outcome of OPEC meeting, as key decisions should affect CAD and USD. Later on the focus will be on UK GDP data and US labor data.

24/ 05/ 2017

Euro vulnerable ahead of Draghi’s Speech and FOMC Minutes

USD and EUR went head on against each other as mixed reports came out from both Euro zone and USA. However there were signs of Dollar regaining its lost gains, in response to a broad bid in the US dollar.

The greenback rallied against its main competitors on the back of a sharp rise in the US yields, as odds of a June Fed rate hike increased to 83.1% versus 78% seen earlier this week.

Today’s focus will be on Mario Draghi and FOMC Minutes which could cause volatility in the market as these will be monitored closely by the investors for fresh inputs.

23/ 05/ 2017

Greenback Expects Mixed Reactions

The markets have been mixed yesterday, as the dollar seems to be getting back some of its strength across certain pairs after the pounding that it had received at the hands of the market over the last week. It remains to be seen whether this is just a temporary relief for the dollar at the beginning of the week or whether this would be the same in the short term. The FOMC meeting minutes are scheduled to be released in the middle of the week and this could sway the dollar as well.

Today focus is filled with moderate data coming in from main Europe and US. First up, Manufacturing and services PMIs from France and Germany are followed up by the EU composite.  Starting off the European session we also have the Q1 GDP out of Germany, with their IFO survey at the end of the amalgam of data on offer.