feedback
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 ...

The FxPro Analyst Team

US Administration Agenda Falters

Fading support for President Trump is weighing on USD, as the US administration is finding it difficult to get enough backers in the Senate to pass the healthcare reform bill, raising questions about how the rest of its ambitious agenda would fare. USD was also weakened by the fading likelihood of US interest rates rising in the near term, the likelihood of a rate hike in December has fallen below 50%. The minutes from the July Reserve Bank of Australia meeting showed the RBA remains focused ...

The FxPro Analyst Team

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week. Data released shows China GDP at 6.9% (markets had expected 6.8%), indicating the Chinese economy has stabilized. In addition, Chinese President Jinping said that “the central bank will play a stronger role in defending against risks” and he called for more work on safeguarding the financial system and modernizing its regulatory framework. The buoyant Global ...

The FxPro Analyst Team

US Labour Market Strengthens

The Federal Reserve appears to be on track for a 3rd interest rate increase for the year as recent data releases appear to show US economic policies are on track. The US Labour Department released data that showed Initial claims for unemployment benefits dropped 3K to a seasonally adjusted 247K for the week ended July 8. This is the latest indication that the US labor market strength is sustaining economic growth. Separately, the Producer Price Index rose 0.1% in June, after being unchanged in ...

The FxPro Analyst Team

Yellen’s Dovish Tone

US equities continued upward on Wednesday, with the DJ30 improving 0.5% on the day and trading to an all-time high of 21,576.90. The impetus behind this was Fed Chair Yellen’s testimony to Congress that she had confidence in the US economy and suggesting that US inflation will not force the Fed’s hand. In other words, there will be no rush to tighten monetary policy (aka raise interest rates). USD fell against the majors and gold as the markets are still digesting the release of emails from ...

The FxPro Analyst Team

US Political Uncertainty = Lower USD

Markets were somewhat languid as traders focused on today’s Congressional Testimony by Fed Chair Yellen, the Bank of Canada interest rate decision and the latest US Crude Oil Inventory data release. However, news was released that President Trump’s son, Donald Trump Jr, was told in an email that Russia wanted to aid his father’s Presidential campaign. Donald Trump Jr was forced to release damning emails showing that he welcomed what he was told was a Russian government attempt to harm Hillary ...