16/ 04/ 2017

Week Ahead | Dollar Easter Disaster

On a quiet Friday, amid low liquidity the US dollar fell modestly across the board after the release of US economic data. The greenback finished the week lower. Most losses took place late Wednesday, after negative comments from US President Donald Trump. 

Key reports scheduled for this week are RBA Meeting minutes, Euro Consumer and Producer Price Index, US Industrial Production, Initial Jobless Claims, and Manufacturing PMI. Markets will be looking forward to US data to understand if dollar can stage a comeback before next week’s French election.

13/ 04/ 2017

USD tumbles across the board on Trump Jawboning

The U.S. dollar and Treasury yields tumbled after President Donald Trump said he preferred the Federal Reserve “keep interest rates low as the dollar is getting too strong, and partially that's my fault because people have confidence in me. But that's hurting-that will hurt ultimately”. Trump’s bearish comments on the US dollar and the dovish talk about the interest rate bumped up EUR/USD, leading to broad based losses in the US dollar

While U.S. and global politics have consumed investors' attention this week, economic data shares some of the spotlight today, Early morning, Australia will release their Unemployment data and their Employment Change data. from Germany consumer price index will be released, the day will end with US releasing their Initial Jobless Claims.

12/ 04/ 2017

Can Carney Save the Pound?

The US Dollar weakened when Janet Yellen provided no help with her speech on Monday. Reports which came out from Euro zone yesterday came out stronger than expected which supported EUR growth. On the other hand, the poor performance of yields in the US money markets kept plotting against a more sustainable recovery in the dollar, as the 10-year US treasury yields has dropped once again to -2.30 levels.

Today’s main focus remains on the UK employment data due to be released short after BOE Governor Mark Carney’s speech where he is expected give some hints on future monetary policy for UK.

11/ 04/ 2017

Dovish Yellen weakens the Dollar

The U.S. dollar traded lower against all of the major currencies today on the back of rising geopolitical tensions and uninspiring comments from Fed Chair Janet Yellen late yesterday evening. Her less hawkish comments saw US Dollar struggling to hold on to its gains over its rivals.

Data wise today will be important Euro Zone and UK as key data such as Industrial production, CPI and PPI will be released. Strong data would validate the hawkish outlook at the last BOE monetary policy meeting and drive GBP higher while investors will be eyeing whether EUR/AED could move away from 3.89-3.90 range with focus now moving to French election.