Dollar giving up gains

22 July, 2015

FX markets have been something of a sideshow this week compared to what we’ve seen in commodities. That said, there was a notably softer tone to the dollar yesterday afternoon, evident on all of the majors. For the Aussie, this allowed for a push above the 0.7440 level, with some reversal seen overnight on the back of the latest CPI data and comments from RBA Governor Stevens. Inflation data, on the headline measure at least, was softer than expected, rising 1.5% YoY vs. expectations for an increase of 1.7%.

For the day ahead, the BoE minutes to the July meeting will be of interest to sterling, especially in light of the recent comments from Carney hinting that a rate hike may come earlier than markets expect. Naturally, his is only one view of 9 on the committee, but if there is a sense that things are shifting towards his way of thinking, then sterling may seek to regain some of the recent again the dollar, which yesterday took cable back below the 1.5550 level. EURGBP is also worth watching after the recent move below the 0.70 level which the market has struggled to sustain yesterday as the single currency pushed ahead against the dollar. Otherwise, there is also the matter of the RBNZ decision late this evening, where a further cut in the main repo rate to 3.00% is anticipated. This is largely priced into the kiwi, which has been falling since the last meeting, so there is low risk of them doing more or getting more aggressive on their view of currency strength. The kiwi trades at 0.66 after the bounce from 0.65 at the end of last week.


Source link  
Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...

Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...


Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

Will the French Presidential Election affect EUR?

The first round of the French presidential election...

USD Firms Ahead of Q4 GDP Final Reading

The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming...


Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...

  


Share: