22 December, 2016
The Dollar trades with a little change against other major currencies, sticking near the 14-year highs along with the spike in risk aversion after the tragic events of Monday and the positive rate hike expectations for the US next year. USD Index which tracks the greenback against a trade-weighted basket of six major rivals is stable at 103.27, trading near 103.62 level which it reached on last Thursday.
Market performance suggests trading volumes are limited ahead of the Christmas holidays.
XAU/USD prices plummeted to an 11-month low at the end of last week, as the US dollar was gaining traction and concerns over further tightening of US monetary policy is weighing down on the prices. DXY rose nearly 6% after the US elections in early November, due to expectations of faster growth in the US economy during the new.
Market sentiments are deteriorated after Russia’s ambassador, Andrei Karlov was shot dead in Turkey at an art gallery. A few hours later a truck crashed Christmas fair in the centre of Berlin killing 12 people and injuring around 50. An outbreak of terrorism in Europe is a negative factor for the markets, weighing down on Euro. Euro is stable against the Greenback at 1.0393 after the fresh 14-year low of 1.0349 it reached yesterday.
GBP/USD fell by 0.25% to 1.2333, trading near a one-month low of 1.2310 it reached on Thursday. Earlier on Wednesday, the Office for National Statistics said that UK net borrowing in public sector grew in November by £12.21 billion, compared to the initial projections of £11,30 billion increase. In October the figure rose by £4.32 billion and revised from £4,30 billion.
USD/JPY fell by 0.25% to 117.56, while USD/CHF trades stable at 1.0290. The Australian Dollar weakened, AUD/USD lost 0.15% trading at 0.7249, while the pair NZD/USD trades almost unchanged at 0.6911.
The Pound collapsed 0.6% after the UK Prime Minister Theresa May...
The U.S. Dollar let the Euro take a significant lead...
The Canadian dollar has approached the 3rd point of the descending channel on the weekly chart. In the daily chart, the price has touched the horizontal level of 1.3387 in the form of a shooting star. Therefore, we should sell the pair at the market opening...
The plan successfully passed through the upper chamber and is now going to the committee stage where it’s likely to be amended to warrant better relations with the EU...
ECB Draghi is to address the parliament today and investors will be waiting for any hints on changes in the monetary policy. On the press-conference during the last ECB meeting the future seemed quite downbeat on the EU economic growth, while leaving QE without revisions...
The time has come to sell the Euro. The main scenario includes a pullback and testing the level 1.0764 with a further drop up towards the level 1.0659. Although, a drop may keep extending even further...
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Markets started the week with no sharp changes and lower trading volumes, due to the Martin Luther King Day in the US, ahead of the crucial monetary policy decisions of the ECB and BoC...
The rally of the American currency fizzles out, as FOMC Minutes release failed to surprise the markets. In the December´s speech Yellen emphasized the importance for the FED to keep pace with possible economic expansions during Trumps presidency...