Dollar on the Defensive

4 May, 2016

The dollar has taken a considerable beating over the past week, although has clawed back some of the losses over the past 24 hours. In the bigger picture, we’ve once again reached the phase where the stronger dollar story, based on widening policy differentials, is lying shattered. The dynamics of the currency markets are also changing on the non-dollar side, with those central banks that are still easing in non-conventional ways (principally EUR and JPY) finding that their currencies are not reacting in the way anticipated or desired. The euro is up nearly 2% since it last eased policy early March, with the yen up 4% over the same period and nearly 11% since the announcement of negative (deposit) rate at the end of January. Of course, the weaker dollar has played a part in this, but the euro is up vs. most of the major currencies as well over this period. The bottom line is that the old rules have been replaced and monetary policy is no longer the primary driver of currencies.

Yesterday, there were also some Fed officials on the defensive, with Lockhart calling a June move “a real option” with Williams also sounding hawkish. For today, the early focus will be with the final PMI data for the Eurozone at 08:00 GMT. We also have the ADP numbers in the US ahead of the US payrolls data on Friday. Durable goods data also seen at 14:00 GMT. In terms of levels, the 1.1616 high on EURUSD sets a new resistance level, whilst 105.55 is the initial support on USDJPY.


Source link  
Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...


Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...


U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...


In the past 24 hours Bitcoin has gained 5.29% and reached $3520.85427283. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0395% and is now at $1.1371. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 5.15% and is now at $94.2619560034. 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
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: