The crowded dollar

17 November, 2015

The dollar looks to be in control in the early part of the week. This is evident on EURUSD where we are not that far from the lows see mid-March of this year at 1.0458 should the current downward trend be continued. The move on USDJPY puts it close to last week’s high of 123.60, whilst USDCAD is slowly working its way towards the late Sep high of 1.3457. The latest BAML Fund Manager survey showed long USD as the most perceived crowded trade at present, on the basis of the anticipated Fed tightening and expected further measures from the ECB early next month. ECB Board Member Praet provided the latest insight with his comments overnight, suggesting that the credibility of the ECB has been undermined given its persistent inability to judge how long it will take inflation to return to target. The only debate seems to be exactly what measures will be introduced in just over 2 weeks time.

The other story is the oil price, where we are just above fresh lows for the year. For inflation readings, we will start seeing headline rates move up in the early part of next year as the sharp fall late 2014 falls out of the YoY calculations, but these latest price dynamics will limit the extent to which headline inflation picks up. The UK CPI numbers, seen at 09:30 GMT today, are likely to show continued negative readings on the headline rate, with the core rate seen holding steady at 1.0%. PPI data is also released at the same time, which continue to show deflationary forces in the pipeline. Note that US CPI data is also released later today at 13:30 GMT, where the core rate is seen steady at 1.9%, headline nudging slightly higher to 0.1% (from 0.0%). Finally, ZEW data for Germany and the Eurozone will be of modest interest at 10:00 GMT.


Source link  
USD weakens as Supreme Court rules

Markets have maintained the themes from yesterday overnight with the USD showing weakness on the back of poor Philly Fed data. The US Supreme Court...

OPEC meetings in the spotlight today

OPEC, JMMC meetings are taking place today in Vienna with agreement on production levels high on the agenda. This can impact on prices in Oil markets...

Markets are taking a breath right now

Whether this turns into a broader rally or the selloff is resumed remains to be seen. Stock markets are higher after support was found in the European...


Trump wants a further $200 Billion of tariffs

While there was risk yesterday from Central Bankers very little was said to move the market. Instead the Trade War narrative boiled up again with the latest...

Oil down over 4% from Friday's open

OPEC and non- OPEC members are meeting in Vienna on Thursday for the start of a 3 day summit where production cuts are on the agenda...

ECB sparks huge moves in the Euro

The ECB dominated markets yesterday as they shifted their policy stance and signalled their exit from QE. The Bank is looking to reduce its bond buying by...


FOMC meeting results in a weaker dollar

The FOMC raised rates by 0.25 bps yesterday evening to a 1.75% to 2.00% target range in a hawkish move and reaffirmed its expected forecast of 2 more...

Progress made between Trump & Kim

US President Trump and North Korean Leader Kin Jong Un met in Singapore overnight. Progress was made between the two leaders during this first meeting...

Poor British statistics presses on sterling

Britain's statistics continue to indicate a slowdown in the UK economy. Today's data showed a decline in industrial production by 0.8% during April against...


In the past 24 hours Bitcoin has gained 4.78% and reached $6169.54. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.1632% and is now at $1.1659. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -9.28% and is now at $451.214. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets88%
2FXTMFXTM87%
3HYCMHYCM85%
4FIBO GroupFIBO Group80%
5FxProFxPro77%
6FXCMFXCM74%
7Alfa-ForexAlfa-Forex72%
8HotForexHotForex71%
9FP MarketsFP Markets70%
10XMXM69%
  


Share: