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The FxPro Analyst Team

FxPro Forex Analysis: USD defense following Trump’s comments will probably be short-lived

The dollar index reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels from November and May-June. However, Trump's comments have caused pressure on the American currency, throwing the dollar from the recently achieved highs. U.S. president in an interview CNBC noted that the yuan "was dropping like a rock", and the rising dollar and higher interest rates raise concerns about the potential impact on the ...

The FxPro Analyst Team

FxPro Forex Analysis: The potential of USD growth is limited

Powell's speech with the semiannual report in the U.S. Congress contained an optimistic view on the economic outlook. Such a tone has reduced fears that trade wars will negatively affect economic valuations. The Fed's confidence that the years ahead of the low unemployment and sustained growth have increased the demand for risks at the stock markets. As a result, S&P500 has overcome the downturn of the previous two trading sessions and has updated the highs since February, rising by 0.6%. The ...

The FxPro Analyst Team

FxPro Forex Analysis: Markets under pressure after Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets lose 0.5%-0.7% on Tuesday morning. After returning to the highs area since March, the American S&P 500 lost growth momentum in anticipation of further signals from the economy or the Fed’s chairman. The dollar index has continued its decrease since Friday, losing 0.8% in the meantime and failing to stay in the area of year highs near 95. The ...

The FxPro Analyst Team

FxPro Forex Analysis: US President Trump tells UK PM May “No Hard Brexit, No Trade Deal”

President Trump has spent yesterday in Europe where he attended a NATO meeting before travelling to the UK. He left Brussels with the commitment of NATO members to meet their agreed 2% spending target. Reports from the meeting suggested that he threatened to pull the US out of NATO if this wasn’t agreed which led to a kneejerk selloff in markets at around 08:55 GMT yesterday. He conducted an interview with the Sun newspaper in the UK where he is reported to have said that May’s plan for a ...

The FxPro Analyst Team

FxPro Forex Analysis: Markets shunted into risk aversion as US President looks to add $200B in tariffs against China

The risk on mode continued in yesterday’s trading session with Asian, European and US markets closing higher. After the US close President Trump threatened to expand tariffs on additional $200B worth Chinese products. This led to a selloff in stocks wiping out all of yesterday’s modest gains and eating into the gains from Monday. Risk off extended to other markets as traders flew to safety with the yen gaining in value, USDJPY fall from 111.263 to 110.791, while AUDUSD took a hit falling from ...

The FxPro Analyst Team

FxPro Forex Analysis: The Pound continues to weaken as UK political uncertainty prevails

Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways with his post as Brexit Secretary. The initial move on the Davis resignation was for Cable to rally from 1.33000 up to 1.33500 but news of Johnson’s departure sent the pair down to 1.31940. Jeremy Hunt replaced Johnson as Foreign Secretary, PM Theresa May was quick to right the ship saying that there would be no second referendum on Brexit but that the ...

The FxPro Analyst Team

FxPro Forex Analysis: Three UK Government Ministers Resign over the latest Brexit proposals

The UK’s Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May’s latest softer Brexit proposals that were agreed at a cabinet meeting over the weekend. He said in a statement that his role requires an “enthusiastic believer” in May’s approach rather than a “reluctant conscript”. GBP reacted to the data during a period of lower liquidity with GBPUSD selling off a little from 1.33139 to 1.32846. The full impact of the move has yet ...

The FxPro Analyst Team

FxPro Forex Analysis: FOMC Minutes confirm they expect to reach neutral policy by 2019

The FOMC minutes highlighted some increased risks to the US economy particularly concerning trade relationships but the view still holds that the Fed should and will stick to its path of rate hikes with another two hikes being the consensus for 2018. The path of rates hikes will continue into 2019 with the Fed achieving a neutral policy in that year. Despite the hawkish policy the FOMC minutes tempered the tone with concerns and risks, making the USD less attractive and causing little movement ...

The FxPro Analyst Team

FxPro Forex Analysis: Some ECB members want earlier rate hike

The markets remain subdued after yesterday’s 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump has restated his call for OPEC to bring down the price of gasoline. He recently backed Saudi Arabia to increase production after he targeted Iran with tougher than anticipated sanctions reducing Iran’s production by up to 1.1M bpd. An Iranian Republican Guard Commander has said that Iran would block the Strait of Hormuz if the US ...