Category Archives: Forex Fundamental Analysis

Tax-Bill Support Fuels End-Of-Week Dollar Recovery

By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. It may have been a tough week for the , which was steady-to-lower against all of the major currencies but progress on tax reform helped fuel an end-of-week recovery. Taking a look at this week’s developments, the latest and improvements helped the Federal Reserve upgrade its growth projections for this year and next. Unfortunately the dollar failed to benefit from these adjustments because the path of the economy and the central bank’s views could change […]

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Global Stocks Dip On Tax-Reform Jitters, Gold Shines

A sense of caution was felt across financial markets during Thursday’s trading session as concerns surrounding the progress of U.S. tax reforms resurfaced. Asian stocks were mostly lower early trading on Friday thanks to this growing uncertainty, while the lack of risk appetite exposed European shares to further losses. With Asian and European markets gripped by U.S. tax reform jitters, Wall Street could come under pressure this afternoon as investors scatter away from riskier assets to safe-haven investments. Dollar slips on tax reform uncertainty It has certainly […]

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EUR/USD: Buy On Dips | Investing.com

The shrugged off the latest , which was viewed as dovish by markets. After a dip toward the support area at 1.1760, the pair has recovered part of the post-ECB slide and is probing the 1.18 handle again. The didn’t receive any meaningful support from strong US as traders are still focused on the Trump’s tax plan. The uncertainty on this front continues to depress the greenback, which plays into the euro’s hands. The Fed still expects a three-quarter-point rate hike next year. But considering low inflation […]

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Dollar Close To Week’s Lows; EU Leaders Decide On Brexit

Here are the latest developments in global markets: FOREX: The was not much changed after hitting an eight-day low against a basket of currencies yesterday on uncertainty over the passage of tax reforms. Kiwi/dollar advanced after New Zealand’s finance minister expressed no concerns about a rising currency. STOCKS: The lost 0.6% and the was down by 1.1%, with Asian markets mostly on the decline. were 0.25% lower at 0723 GMT, with futures on the being up by 0.25% and as well as contracts both trading higher by […]

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Euro Slips As ECB Says Stimulus To Stay

The euro has steadied in the Friday session, after losing ground on Thursday following the . Currently, is trading at 1.1796, up 0.15% on the day. After a busy week with rate announcements from the Federal and the ECB, Friday is a light day. The sole eurozone event, , looked weak as the trade surplus fell to EUR 19.0 billion, well off the estimate of EUR 24.4 billion. This marked a 3-month low. In the US, the key event of the day is the , which is […]

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May Still “On Course” With Brexit

It is highly likely that the leaders of the EU27 will give authorisation for Brexit talks to move to the second stage today. In Stage two, the agreements of phase one will be legally formalised and the long-term relationship between the bloc and the UK will be considered. This will entail discussion of the framework for security issues and trade together with the details for any transitional period. The UK is about to walk out onto the thin ice. It is impossible for any agreements over trade […]

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Yen Edges Higher, Investors Eye Tankan Indices

has posted slight gains in the Thursday session. In North American trade, USD/JPY is trading at 112.64, up 0.10% on the day. On the release front, Japanese indicators were positive. Flash improved to 54.2, and Revised rebounded with a gain of 0.5%, matching the forecast. Later in the day, Japan releases the and Indices, with both indicators expected to improve to 24 points. In the US, reports were strong, as and Retail Sales both beat their estimates, coming in at 1.0% and 0.6%, respectively. There was more […]

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Federal Reserve Increases Interest Rates

As we predicted yesterday, the US Federal Reserve has approved its third quarter point rise in interest rates for 2017, taking the US interest rate band up to 1.25 to 1.5%. The principal aim of the policy is to normalise interest rate policy following on from the years of ultra-low interest rates as a consequence of the Global Financial Crisis. To indicate just how low rates have been, it is instructive to look at the long-term figure for US interest rates which comes in at 5.75% for […]

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BoE Keeps Rates Unchanged, Draghi In Focus

Sterling offered a fairly muted response during Thursday’s trading session after Bank of England policy makers unanimously voted to leave unchanged at 0.5% in December. Although inflation in the United Kingdom has jumped to its highest level in almost six years, it seems that the growing uncertainty over Brexit is likely to encourage the central bank to adopt a wait and see approach moving forward. While the Monetary Policy Committee maintained the view that “further modest increases” in the key rate may be needed in the coming […]

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Gold To Rally Again | Investing.com

is on track today to rack up its second straight day of gains which ends a disastrous 2 weeks where the precious metal tumbled over $50. The catalyst for the rise was yesterday’s Interest rate decision and monetary statement from the US Federal Reserve where as expected the Fed increased rates by 25 basis points. The rate hike was priced into the market well before yesterday’s decision but the following caught investors by surprise. Many had been predicting that the Fed would hike rates 4 more times […]

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