Dollar dominance

November 16, 2016

There was a sense of stabilisation yesterday after the sharp rise in bond yields seen at the end of last week, the impact of which spilled over into the FX and also equity markets. It’s notable that trading ranges have remained wider since the US election last week, more notable in EURUSD and USDJPY, less so on sterling which has outperformed the dollar for the most part over the past week. But the narrative on the dollar is strong, having closed above the 100 level of the past couple of days, that’s more than a 5% increase over the past six weeks. A move higher in interest rates next month is now a near dead-cert, with the implied path for rates next year also moving higher, providing further support for the dollar.

Overall, it’s still proving hard to pull away from Trump presidency speculation, which continues to drive many asset classes and sectors, especially financials, technology and pharmaceuticals in the US. The data calendar today see labour market data in the UK, but this won’t impact the same way that the US jobs numbers impact the dollar. Sterling has continued to hold up well in the post-US election environment. For now, it’s difficult to see the strong dollar environment receding, at least until the narrative on the dollar changes, which looks unlikely for now.

Publication source
FxPro information  FxPro reviews

December 9, 2016
Coeure - ECB ready to do more
ECB board member Benoit Coeure commented the yesterday decision in a radio interview. The central bank announced QE tapering stressing that it does not mean less engagement...
December 8, 2016
Tapering and extending
The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB...
December 7, 2016
Oil ma pull back to $40
The oil price fell for the first time in 4 days today as skepticism creeped in over some OPEC member’s commitment to keep to their end of the deal and cut production...

FXCM Rating
FxPro Rating
XM Rating
Vantage FX Rating
HotForex Rating
Grand Capital Rating

Anyoption Rating
Beeoptions Rating
OptionsXO Rating
TopOption Rating
Empire Option Rating
OptionFair Rating