FX Market View #25

Dollar Gains on Market Uncertainty as Risk Abates

From the beginning of last week, the global markets were depleted of any sustainable risk appetite as the news from the collapse of China’s Evergrande was absorbed. This lifted the Dollar as investors sought safe-haven assets to protect investment portfolios against further downside pressure. As a consequence, the initial Dollar sell-off following the FOMC meeting…

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FX Market View #24

Central Bank Meetings are the order of the week A slew of central bank meetings in the week ahead will keep the markets engaged in monitoring the currency majors. Specific attention on Dollar strengthening as the market looks for potential trending patterns to emerge. All in all, there will be a release of policy data…

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FX Market View #23

Market looking to Trade the ‘Corona’ Delta The Dollar could not hold onto the gains made earlier in the week, as it paired losses against most currency majors as well as emerging market currencies. The catalyst behind the sliding Dollar most likely stemmed from two sources. Firstly, the geo-political environment heated up following the inconclusive…

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FX Market View #22

Dollar heads higher on growing US jobs data The Dollar ascended against the currency majors last week, snapping its decline in the beginning of August. Higher than expected jobs growth data was the stimulus that supported the greenback’s upwards trajectory. As a result, US 10-year yields reversed its five week decline, contributing toward the Dollar…

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FX Market View #21

Only equity markets trade higher as risk appetite falls As the Delta variant of the corona virus subdued several major economies around the globe, the Dollar strengthened last week. In countries such as Japan and Australia as well as parts of the Eurozone, economic activities had fallen due to the implementation of some quarantine restrictions.…

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FX Market View #20

Dollar rally’s on inflation and retail sales data The Dollar rally’s against all major currencies last week apart for the Yen, to break the resistance it faced earlier in the month. A contributing factor towards the slight rally in Yen is put down to the BOJ tweaking its macro forecasts during Friday’s meeting. In effect,…

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FX Market View #19

Dollar resists short term sell-off and trades higher In the past week the Dollar faced resistance to its near-term trend of strengthening against the currency majors. Despite the fact that the jobs report released in the beginning of the month showed robust numbers, the greenback initially declined following a bout of profit-taking. However, the short-selling…

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FX Market View #18

Is this the time to buy into the Dollar dip? Following a hawkish view from the FED, the markets have priced in at least one rate hike before the end of next year. This contributed towards a Dollar recovery in the past 7 days; however the technical picture appears stretched. The Dollar near-term trend starting…

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FX Market View #17

Dollar experiences technical weakening gainst the majors During the past week the Dollar was pushed back as it failed to consolidate weeks of gains against the currency majors. From a technical stance this scenario is not totally unexpected. If you include a more hawkish tone from the FED with economic data revealing an increase in…

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