The Australian Dollar is consolidating between 0.7200-0.7250 with the market weighing the divergence between the RBA and US Fed’s next move in monetary policy. The market is pricing in 13% chance of RBA’s cut on 7th June and 33% chance of rate hike by US Fed on 15th June. Fed… read more
Daily
The following is a summary of the previous day’s foreign exchange market movements in the major currencies and the commodities markets. It is meant as an informative guide to the reasons underlying currency and commodity movements seen in the previous day’s foreign exchange trading. Together with a market snapshot at close of the New York session, indicators/events released during the session are outlined compared with their expected level of influence before release. This fundamental analysis summary also highlights upcoming data/events which may influence currency movements upon their release.
You will also find a technical analysis snapshot at time of release, highlighting support and resistances of each of the major currencies and gold. Coupled together with the reasons behind these important levels, traders can expect some support or resistance when these levels are reached.
Bullet Report
May 19, 2016Two FED members are set to speak today and following the surprisingly hawkish comments released yesterday, the market will monitor their words very carefully. Yesterday USD jumped after FOMC minutes were released. The minutes raised hopes for a June rate hike. Policymakers generally judged that it might be justified to… read more
Daily Outlook
May 19, 2016FOMC minutes released last night caught the market off-guard as commentary from the Fed increases the likelihood of a hike in June. Minutes from the April FOMC meeting made clear the potential for a June rate hike given a continued improvement in economic growth, labor market conditions and inflation. Since… read more
Bullet Report
May 18, 2016Today’s main focus will be the FOMC meeting minutes for April. The minutes are most likely to reveal that the FED members are divided over the need for a rate hike and give some indication on the probability of a US rate hike in June or July. Besides this, crude… read more
Daily Outlook
May 18, 2016US inflation beat expectations as deflationary pressures from low energy and food prices continue their reversal. Despite monthly CPI beating forecasts by 0.1%, the market remains unconvinced as to the possibility of a rate hike in June. Hawkish commentary in response to the data from FOMC members Williams and Lockhart… read more
Daily Outlook
May 17, 2016Crude oil rallied to its highest level in 6 months as supply factors in Nigeria, Libya, and Venezuela shake the market while fires in Alberta continue to rage. Crude prices have faced considerable strength over the last two weeks as Nigeria oil output hits its lowest level in decades… read more
Bullet Report
May 16, 2016Today’s calendar is very light with only US PMI standing out this afternoon, which is expected to decline to 7 from 9.6 in April. Over the weekend, Chinese data came out weaker than expected however reactions were not very negative. The new string of bad data reveals though that China’s… read more
Daily Outlook
May 16, 2016Stronger than expected US data struggled to convince the market on Federal Reserve tightening in June. Despite retail sales recording a rise of 1.3% (versus -0.3% in March) market expectations for a rate hike in June are sitting around 4%. Equity markets were less pessimistic on the potential for future… read more
Daily Outlook
May 13, 2016Bank of England chose to keep its Monetary policy unchanged yesterday, in line with market expectations. The BOE kept rates at 0.5% and maintained the size of its 375 billion reserve for asset purchase program, dispelling worries among investors that members were supportive of a cut. At the same time,… read more
Daily Outlook
May 12, 2016Gold price bounced back on Wednesday supported by a weaker US dollar and concern regarding growth in emerging markets. The precious metal jumped by 1.5% from its previous two-week low of $1258/ounce, currently trading at the $1277/ounce level. The price-action for Gold has been choppy for the last few weeks,… read more
