24/ 09/ 2019

Global Economy looks increasingly uncertain, while USD rivals facing downside risks

The Euro edged lower against the U.S. Dollar on Monday, after weaker-than-expected German flash purchasing managers' index survey, the lowest level since 123 months and went down by 0.32% lower against the greenback. The Pound was down 0.28% Investors’ attention will remain on the development surrounding Brexit, ahead of the U.S. fundamental drivers.

The Dollar plunged to a near 2-week trough as a U.S.-China trade breakthrough seemed unlikely after President Donald Trump stated that he was not looking for a partial deal. Trade negotiations with the US have ended on a positive note and President Trump and Japan Prime Minister Abe are expected to sign a trade deal on Wednesday.

23/ 09/ 2019

Week Ahead | US-China Trade and Brexit Back to Forefront

The euro declined against the greenback on Friday, as progress in U.S.-China trade talks and that the Federal Reserve would not lower rates aggressively. U.S. and Chinese deputy trade negotiators are set to continue talks that began on Thursday in an effort to lay the groundwork for high-level discussions in early October that will determine whether the world’s biggest economies can reach a trade deal. Sterling declined against dollar on Friday, after Irish Foreign Minister said that London and the European Union were not yet close to a Brexit deal.

A report in the Financial Times that British Prime Minister Boris Johnson had told colleagues he did not expect to be able to reach full “legally operable” deal covering the Irish border at a meeting of EU leaders also weighed on sterling. The losses came after a rally overnight following European Commission President Jean-Claude Juncker saying that agreement on a Brexit deal with the United Kingdom was still possible.

19/ 09/ 2019

US Feds cuts back on the rates boosting the Dollar across the Board

The dollar found broad support on Wednesday Late session after the U.S. Federal Reserve cut interest rates, as expected, but offered mixed signals about future easing while weak employment figures hit the Australian currency.

The moves came after the U.S. central bank, on a 7-3 vote, said it had lowered the Fed funds target rate on Wednesday to a range of 1.75% to 2.00% “in light of the implications of global developments for the economic outlook.

However, Fed Chairman Jerome Powell described U.S. prospects as “favorable” and the rate move as “insurance.” He did not rule out future cuts, but his remarks were not as dovish as markets had hoped for which lifted bond yields and the dollar.

Projections published by the Fed showed policymakers expected rates to stay within the new range through 2020, while futures markets have priced in at least another cut.

U.S. President Donald Trump said on Wednesday there were many options short of war with Iran after U.S. ally Saudi Arabia displayed remnants of drones and missiles it said were used in a crippling attack on its oil sites that was “unquestionably sponsored” by Tehran.

18/ 09/ 2019

Markets await the FED’s interest rate decision

The Fed is expected to cut interest rates for the second time in a decade today, but Fed Chairman Jerome Powell is unlikely to deliver the message markets want to hear on plans for future rate cuts. Economists said it’s unlikely the Fed forecast will include more than one more rate cut in its outlook for this year, presented on a chart, known as the “dot plot.” Many in the markets are looking for two more cuts this year.

The dollar traded near a seven-week high versus the yen as oil markets recovered from a supply shock, but the focus is firmly on a U.S. Federal Reserve meeting later on Wednesday that is widely expected to deliver an interest rate cut. Sterling traded near a six-week high versus the dollar as some speculators reduced excessive bets on a decline in the pound, but sentiment remained weak due to uncertainty over how the UK will exit the European Union.