6 January, 2017
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. This has already priced in, as the absence of a new growth catalysts may be a signal that the rally is over:
Markets are turning from the overall optimism to the harsh truth of the fundamental indicators and actual shifts in the economy. Employment data this week may be the first of many reports to sober up the investors.
The European currency trades with minor advances while Pound managed to recover thanks to the weakness of the Dollar. The Japanese Yen and Swiss Franc trimmed down some recent declines trading with moderate gains against the US Dollar. Australian Dollar has flatlined.
Crude futures renew advances following the weakness of the American currency, as the growth remains limited with the traders exercising caution to avoid sudden shocks that might come from the countries that didn’t join OPECs accord and keep ramping up the production.
The safe heaven metal is on the growth track, as some investors return to the safety play. Bullion gained 0.73% trading at $1,173 per troy ounce.
The Russian currency breaks the 60 Rouble per Dollar level, first time since July 2015. Investors consider Rouble to be undervalued due to the Oil gains and high investment appeals, as the Russian Central Bank still keeps interest rates high, allowing investors to exercise carry trading.
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...
Bank of Japan stood pat on the meeting leaving the short-term and long-term policy rates unchanged at -0.1% and 0.0% respectively. BoJ head Kuroda is yet to clarify the further steps on pumping money into the Japanese economy at the press conference aimed towards stimulating the consumer spending and inflation...
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 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...