The
Dow Jones FXCM Dollar Index put in for its first two-day bearish performance in three weeks Thursday and Friday, but this was more a technical development than a trend change.
Market sentiment firmed up ahead of the G8 meeting as the EU talked down the risk for a Greek exit, and the rebound in risk-taking behavior may gather pace in the days ahead as European policy makers increased their pledged to bolster the euro-area.
Crude oil and copper may rise amid profit-taking on risk aversion bets while gold and silver ride QE3 hopes and growing fears of Eurozone instability may spread.
Investors have panicked as risk correlated assets tumble. As of yet, there isn't any sign of light at the end of the tunnel....
The US Dollar and Japanese Yen aim to extend gains into the end of the trading week as evaporating risk appetite stokes demand for the go-to haven currencies.
The US Dollar has been particularly strong the past two weeks, necessitating a pullback to relieve extreme technical conditions. As two of the hardest hit majors, the Australian Dollar and the Euro, consolidate against the US Dollar, the Japanese Yen has rallied on the back of strong first quarter growth data.
Market sentiment weakened further on Thursday amid the ongoing turmoil in the euro-area, and the flight to safety may gather pace going into the end of the week as European policy makers fail to stem the risk for contagion.
Commodity prices have scope to recover amid profit-taking as markets digest the latest batch of negative Greece-linked news flow.
The safe-haven US Dollar and Japanese declined overnight and may have scope for a deeper pullback as markets digest negative Greece-linked news flow.
While a Greek exit alone from the Euro would be a manageable setback, the impact from such an exit would be catastrophic....
Canada’s consumer price index is widely expected to hold steady from the previous month, but a divergence from market expectations may spark increased volatility in the USDCAD as currency traders weigh the outlook for monetary policy.
We are keeping the count on
the dollar’s impressive run. With Wednesday’s close, that is four consecutive bullish trading days and 11 advances in the past 13 sessions.
Asian market participants dropped higher yielding currencies and risk-correlated assets to their lowest levels in at least four months as Greek concerns continue to weigh on sentiment. However, after the Aussie and the Euro hit fresh May lows against the US Dollar, their courses quickly reversed ahead today’s key release.
The British Pound struggled to hold its ground on Wednesday as the Bank of England struck a dovish tone for monetary policy, and the GBPUSD may continue to consolidate over the remainder of the week as it fails to maintain the upward trend from earlier this year.
Commodity prices fell in Europe as Greece-linked risk aversion gripped markets. Minutes from the Fed’s April meeting may compound losses as QE3 bets fade.
The safe-haven US Dollar and Japanese Yen may correct lower as a large batch of Eurozone and US economic data threatens to spark profit-taking.
Markets remain under intense pressure into Wednesday, although, given how stretched technical studies are looking, we wouldn't be surprised to see a bit of short-term relief....
Considering benchmark pairs like EURUSD and AUDUSD were already forging serious headway in their dollar-bullish trends, it was only a matter of time before the
Dow Jones FXCM Dollar Index finally made the mark of real progress.
The Bank of England’s quarter inflation report certainly highlights the biggest event risk for the British Pound, and the central bank’s updated forecast may spark a bullish reaction in the GBPUSD should the group see a greater risk for inflation.
After selling off to start the week, higher yielding currencies, such as the Australian Dollar, rallied ahead of the US cash equity open as profit taking set in after better than expected European growth data. However, with Greece’s political woes lingering, the EURUSD dropped to its lowest level since January 18.
Market sentiment weakened further on Tuesday as Greece failed to form a coalition government, and the shift away from risk-taking behavior may gather pace during the North American trade as the ongoing turmoil in Europe drags on investor confidence.
Gold and silver rose as the US Dollar retreated amid recovering risk appetite after a firm set of Eurozone GDP figures. Crude oil and copper have scope to catch up.
Inflation in the world’s largest economy is expected to expand at the slowest pace since February 2011 and easing price pressures could drag on the U.S. dollar as it fuels speculation for additional monetary easing.
The safe-haven US Dollar and Japanese Yen may correct lower as a large batch of Eurozone and US economic data threatens to spark profit-taking.
Further progress towards deleveraging risky positions, rising volatility as the trend takes traction and a growing strain of the very framework of global financial markets is suiting the dollar well.
