feedback
The FxPro Analyst Team

Geo-Political Tensions Rise

The past few days have seen geo-political tensions rise between North Korea, the US, Russia & China. North Korea’s recent ICBM test further fueled the United States condemnation of the regime, with the US asking China to impose sanctions on North Korea. North Korea claims the recent successful missile test now brings the mid-west of the US and possibly New York within range. In a “show of force” the US flew 2 jets close to North Korea over the weekend and have made it clear that they will take ...

The FxPro Analyst Team

Beware Profit Takers

On Thursday US durable goods orders were released showing a 6.5% increase, which was the biggest gain in 3 years, resulting in USD clawing back some of its recent losses. The continued signs of global economic growth have helped US equity markets with over 75% of S&P companies delivering earnings that have beaten forecasts. US30 (Dow) gained 0.45% on the day to set a record closing high on Thursday of 21,794.70. Many market participants are wary and expect these “heady” levels to likely ...

The FxPro Analyst Team

US Inflation Concerns Pressure USD

The Federal Reserve ended its 2-day meeting on Wednesday with, as expected, no change in US interest rates. The Fed commented that US inflation had declined, notably removing the often said “recently” which has been conceived as meaning the slowdown might not be temporary. The Fed also said it expected to start winding down its massive holdings of bonds "relatively soon," with many believing this will start in September. This would result in a tightening in financial conditions and is likely ...

The FxPro Analyst Team

Risk-On Sentiment Returns?

Relatively positive earnings and economic data released on Tuesday brought a risk-on sentiment back, as data reinforced confidence in the strength of the global economy. The FOMC will be looking to weigh robust global growth against poor inflation and mixed US. economic data. The Markets expect the Fed to keep rates unchanged, with clues to the fate of its balance sheet being foremost. With a rate hike unlikely, the markets will focus on the Fed's statement, looking for signs of when the Fed ...

The FxPro Analyst Team

Eurozone Growth Continues

Markets were focused on Washington D.C., where Jared Kushner answered questions before a Senate Committee on his dealings with Russian contacts during his father-in-law’s Presidential Campaign. Kushner confirmed having 4 meetings with Russians during the presidential campaign and the transition, but described the encounters as “unmemorable”. Donald Trump Jr. and former Trump campaign Chairman Paul Manafort will testify before a Senate Committee on Wednesday. Data released on Monday indicated ...

The FxPro Analyst Team

Further USD Weakening

On Friday, US equities were sold off, along with USD, with EURUSD reaching its highest level since January 2015. The markets were concerned to learn that there will be a further investigation into President Trumps’ financial dealings that may cause his economic agenda to falter. Further adding to concerns around Trumps administration was the news that senior adviser Jared Kushner will be interviewed by the Senate Intelligence Committee on Monday and Donald Trump Jr., and former Trump campaign ...

The FxPro Analyst Team

USD struggles with Trumps red line

The US Labour Department released Jobless claims data, on Thursday, showing a drop of 15K for the week ended July 15th to 233K. This was the lowest level for 5 months and is a strong indication of a strong job market. The US labour market is at near “full employment” with the latest jobless rate at 4.4%. With such a robust set of data the markets believe this will likely keep the Federal Reserve on track to hike rates later this year and start to reduce its large bond and mortgage back ...

The FxPro Analyst Team

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today the Bank of Japan maintained its heavy monetary stimulus and gave signs that it is in no hurry to rein in stimulus, unlike many of its Central Bank counterparts. The US Energy Information Administration report on Wednesday showed a draw of -4.7 million barrels in US commercial inventories. Along with the Baker Hughes report, showing no new Oil Rigs had ...

The FxPro Analyst Team

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May, as fuel prices fell substantially in the UK in June. The consumer price index increased by an annual rate of 2.6% in June, falling below the consensus forecast of 2.9%, and below the 2.9% rise recorded in May. UK inflation is above the BoE’s 2.0% target for the 5th straight month, but the slowdown in the rate of ...