Market Insight Commentary – 29 June 2018

The US dollar is in a bit of a moody disposition this week, it seems to want to grind higher but rather begrudgingly so. The Fed even tried to tone the dollar down somewhat with some dovish comments, but these were brushed aside by the market. The USDJPY started at about 110.20 and only dipped as low as 110.07 before reaching close on 110.80.

Market Insight Commentary – 03 December 2018

The Chinese are clearly trying to stall the process and perhaps try and to run down Trumps presidency, they have agreed to purchase more US goods and at the same time they have not reinforced to the Chinese that he increase in tariffs are only for a 90 day period. In fact there are a lot of points in the US statement that the Chinese have chosen to ignore – my personal belief is that this debacle is going to raise its ugly head again after the holidays.

Market Insight Commentary – 12 April 2018

Market Insight Commentary – 23 May 2018

With the exception of Sterling the dollar was weaker against most of the major FX pairs, although the dollar rebounded somewhat in the afternoon session – the market will be concerned by comments from the White House Administration. They are not as optimistic about developments in China and North Korea as what has been reported and contrary to comments in China – Trump said that he was not satisfied with how trade talks in China are developing – this does not bode well.

Market Outlook Commentary – 15 May 2019

Did you know that The Forex or FX Market derives its name from Foreign Exchange. It is essentially the exchange of currency (money) between two different countries. The FX market is the largest financial market in the world, and is open 24 hours per day, 5 days per week.

Market Outlook Commentary – 24 May 2019

The break down in trade talks between the US and China has turned into a blame game with China stating that the US abusing domestic laws to sanction Chinese firms is the reason for this debacle. Whilst the Chinese believe that they have ample tools to cushion a trade war, the fact that they are still willing to continue trade talks with the US if they correct some of these wrongs suggests to me that their counter measures are not as strong as they suggest. The bottom line is that any trade war will put the entire world into an economic recession.

Market Insight Commentary – 03 May 2018

There were limited moves yesterday in most the FX pairs, as the market eagerly waited for the FOMC statement. There was only a 4% chance of a rate hike, but the market was more interested in the statement that followed. The highlight of the statement was wind that the Fed will let inflation run above its target as opposed to making a 2% ceiling. That action is rather dovish, and it means that the dollar immediately sold off on the headlines.

Market Outlook Commentary – 29 March 2019

All eyes were on the Speaker of the House John Bercow in the UK yesterday, he was given around 16 options to select from to put in the ballot, parliament will have to narrow it down as May continues to get a third meaningful vote in play. The DUP are still not prepared to back May completely, they are suggesting that the current deal with the removal of the backstop is what they want, the problem with that is that the EU is not offering that deal – what do they say about wanting your cake and eating it too?

Market Insight Commentary – 16 August 2018

Yesterday was a mixed day as the dollar gave up most of its gains which ended the session mixed, after a bumper Wednesday the CAD gave back most of its gains, but this was something that we had discussed ahead of the day. The Turkish Lira took a breather, as it benefitted from an investment infusion from Qatar, this unfortunately meant that the rest of the emerging market currencies took the brunt of the beating. The EURUSD bottomed out at 1.1300 yesterday, the more concerning factor was that it did not manage to break above the 200 week MA of 1.1360 – this will become the make or break level this morning. A move higher and we might see some EUR bulls starting to take a nibble.

Market Insight Commentary – 26 April 2018

The dollar continued to make higher returns yesterday as the focus remained on the bonds with the 10 years continuing to target 3.05% and the 2 years trading above 2.5% for the first time since 2008. The EURUSD will be the focus today, with the ECB to come and jitters are clearly taking a toll on a crowded position. The buyers are so far happy to build bids at 1.2160 but they don’t look convinced just yet.

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