Dollar looking tired

2 December, 2015

The week so far has seen some signs that the upward momentum to the US dollar is waning. This was evident though most of yesterday’s session and although we’ve seen some recovery overnight, it’s not been sufficient to overcome yesterday’s losses. The dollar has been rising pretty relentlessly for the past 6 weeks and the market having largely priced in a move from the Fed, there is not much more juice to be squeezed from that view. Note that Fed Chair Yellen speaks later today at 17:25 GMT, with the Fed’s Beige book released this evening. The focus is now turning to what sort of indication the Fed will give for rates in 2016, with Fed dove Evan’s speaking overnight and suggesting that rates would rise only modestly next year.

Showing some resilience overnight has been the Aussie, with GDP data proving to be stronger than expected at 0.9% in the third quarter. This comes after recent comments from RBA Governor Stevens who suggested we should all ‘chill’ over the New Year period before re-assessing the data. This has forced the market to scale back expectations for further easing next year, but it’s still priced as a risk and if this is taken out in the coming weeks, then there is further scope for Aussie gains in the early part of next year. For today, we see ADP data in the US which gives some sense of the Friday payrolls release, whilst the Bank of Canada rate decision at 15:00 GMT is expected to see rates remain on hold.


Source link  
USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...

USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...


BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

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...

  


Share: