All eyes remained on Yellen’s testimony overnight. In her prepared remarks for the testimony before House Financial Services Committee, Yellen reiterated that the Fed expects economic conditions to warrant gradual rate hikes. Factors opposing a March rate hike were identified as low inflation, financial market volatility and divergent views among… 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.
Daily Outlook
February 10, 2016Financial markets looked to continue yesterday’s vicious selloff and they did, until the US market opened. Up to that time, GOLD posted another high at $1200 and DAX along with other European indices reached new yearly lows. As a result of the risk aversion, JPY made another attempt to post… read more
Daily Outlook
February 9, 2016Despite the lack of economic data today, financial markets are in turmoil. Renewed selling pressure in oil prices has hit global stocks once again. Crude oil dropped under $30 again (-2.81%) pushing equity markets into the red. Volatility in commodities combined with rumors of a major European financial institution struggling with… read more
Daily Outlook
February 8, 2016NFP release was 151k compared to 190k expectation which should have been negative for the USD however the report also indicated that wages are rising and unemployment dropped to 4.9% from 5.0%. These last two metrics give enough space for the FED to justify the path to rate hikes which… read more
Daily Outlook
February 5, 2016The USD is under severe pressure these last two days with the selloff continuing for the second day in a row. USD has dropped the most in 2 days since Q1 2009 when the FED introduced the QE program. Weak US data such as jobless claims today which unexpectedly rose… read more
Daily Outlook
February 4, 2016Stronger than expected US employment data created a risk on appetite in stock markets which caused the USD to fall vs most pairs. EURUSD tested the key 1.0976 level after breaking strong resistance at 1.0940 while GBPUSD hit 1.4540 for first time since January 12th (+0.95% on the day). Traders… read more
Daily Outlook
February 3, 2016Global equity markets slumped overnight as oil prices tumbled. Oil fell for the second straight day as hopes of supply cooperation between OPEC and non-OPEC states fade. API crude oil inventories data recorded its highest level since the 1930s with crude supplies rising by 3.8 million bbls. WTI is currently… read more
Daily Outlook
February 2, 2016One of the key drivers of 2016’s volatility and nervousness has been the weakness of the Chinese economy. China’s manufacturing PMI data continued to disappoint yesterday, coming in below expectations. Global growth concerns have weighed heavily on the minds of central banks this year as the ECB and RBNZ face… read more
Daily Outlook
February 1, 2016Financial markets reacted to BoJ’s decision, reviving a risk-on sentiment, driving equity and commodity prices. Japan dominated headlines on Friday as the BoJ continued its pursuit of inflation targets. A tight 5-4 vote by the BoJ board saw the implementation of a negative interest rate of 0.1% on certain excess… read more
Daily Outlook
January 29, 2016Sentiment was mixed overnight. The S&P500 is up 0.7% but Eurozone and Chinese equities closed down 2% and 3%. Crude oil is up 3%, reach highest level since 6 January in choppy trade on Saudi and Russian production comments. The US dollar is weaker as US durable goods missed reflecting… read more
