03/ 04/ 2017

Week Ahead | US Jobs Report in focus

The triggering of Article 50 came and went last week, and the market response in the UK could hardly have been more muted. The dollar rose on Thursday, boosted, particularly against the euro and Japanese yen, by a positive read on U.S. economic growth.Fed officials have once again opened the argument for four rate hikes this year rather than the three that were reiterated during the March FOMC meeting.

Following a week with scarce data this week will be more US focused as employment indicators will be releases as well as the meeting notes from the March Federal Open Market Committee (FOMC) which resulted in a 25-basis points interest rate hike. The US Non farm payrolls (NFP) report is the biggest economic release and could end up helping the dollar get out of the current funk due to political stagnation.

30/ 03/ 2017

Dollar fist Pound and Euro

Yesterday was a major event from UK as PM Theresa May triggered Article 50 of Lisbon Treaty. Market players focused purely on the ongoing split between the UK and the EU, as she formally notified their decision of leaving the EU with a letter to the European Union. Theresa May's letter purportedly contains some details on the UK's negotiating position. Although the ‘hard' and ‘soft' Brexit debate has largely passed, there is still some leeway as to how ‘hard' it will be. Theresa May stated that “No deal is better than a Bad Deal”.

While on the Reports released related to US Pending Home Sales (MOM) was far better than expected. Further FOMC member Williams also shared a very positive outlook on the US economy. Due to these Euro and Pound fall against the USD.

Today’s reports coming from European Union EUR Consumer Confidence ; Economic Sentiment Indicator and USD Initial Jobless Claims; Gross Domestic Product Annualized. FOMC Members Kaplan and Williams will give speeches separately.

29/ 03/ 2017

Let the Brexit Battle Begin

Bull markets rarely end in collapse and the US dollar proved that on Tuesday as it roared back to life. Yesterday the dollar rose against a basket of major currencies, as investors shifted focus from Trump’s healthcare bill setback to upbeat economic data and bullish comments from Federal Reserve officials.

Today focus will be on UK Prime Minister Theresa May who will trigger Article 50 of the Lisbon treaty. Both parties, the EU and the UK will now start negotiating a deal on the withdrawal and establish legal grounds for a future relationship.