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  
Profit-taking after big sell-off

There is a demand for profit-taking in the markets after powerful movements at the end of last week and a very aggressive trading start...

Hot August for currency markets

This August seems hot. Not only temperature but also currency market volatility is rising. The period of active vacations, which is accompanied by a decrease in volumes...

Dollar is close to its important levels

The demand for dollar, provoked by the fears of new US sanctions against a number of countries and expanding trade conflict with China push the American currency close...


Trump raises stakes in the trade war

Two opposite trends prevail in the global markets. Strong reporting of companies, including Apple indicators supports the demand in world...

USD grows on high GDP expectations

The single currency is traded near weekly lows against the dollar, getting under pressure after maintaining the soft tone of the ECB during the regular meeting...

Facebook failure obscured optimism

Yesterday the markets enjoyed a rare portion of good news on international trade. Trump and Juncker agreed not to introduce new tariffs for the period of negotiations...


Trump tosses dollar from highs

The dollar remained under pressure after the Trump's criticism about the strengthening of the national currency. Despite doubts that the influence of the president...

Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...


In the past 24 hours Bitcoin has lost -1.83% and reached $6418.78347147. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.3466% and is now at $1.138. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -8.03% and is now at $296.854117789. 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
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: