The dollar remained relatively steady on Friday following the release of the US Retail Sales, which came in at 0.6% in December, a solid reading but missing expectation of 0.7%. Ex-auto sales rose 0.2%, also missed expectation of 0.5%. Headline PPI rose 0.3% mm, 1.6% yy in December, up from November’s 1.3% yy meeting expectation. Earlier in… Read More »
The US$ fell its lowest level in several weeks on Thursday as traders cut long positions after Donald Trump failed to make any mention of his economic strategy at his news conference in the previous session. With no guidance on any new fiscal spending or tax measures to repatriate U.S. corporate capital held overseas, the dollar lost… Read More »
It was all about Donald Trump on Wednesday, with traders aggressively buying the dollar and stocks, while selling commodities ahead of his press conference. That all turned around very quickly once he started speaking – but giving little away with regard to economic detail – and the dollar weakness accelerated following the very strong bid in the… Read More »
It has been a reasonably steady session, with some early US$ weakness which has since been largely recovered, to leave most pairs pretty much where they were this time yesterday. Stocks are slightly stronger following a decent day for commodities although oil remains under some pressure. There is little data due today that is likely to move… Read More »
Currency markets are mixed at the end of Monday trade, with the dollar heading lower against the safe-haven yen due to reduced appetite for risk, but higher against Sterling, which sank to levels last seen in October on talk that Britain would head for a hard Brexit following some weekend comments from UK PM, May. The commodity… Read More »
While Friday’s Non-farm payrolls rose by a less than expected 156K in December, the previous month’s figure was revised up from 178k to 204k. The headline unemployment rate rose to 4.7% as expected, while wages showed strong growth, with the average hourly earnings increasing by 0.4% m/m, above expectation of 0.3%. The AHE was the figure that traders… Read More »
The US$ is heavy at the end of Thursday trade after some mixed job data, which comes ahead of today’s monthly US employment report. The initial jobless claims dropped 28k to 235k in the week ended December 31, much lower than expectation of 260k, while on the other side of the coin the ADP jobs report grew… Read More »
The FOMC Minutes released Wednesday indicated almost unanimous agreement that economic growth could accelerate because of fiscal stimulus under the Trump administration and most Fed board members were eyeing faster interest rate increases. Beyond that though….
It has been a volatile session for the markets, with the US ISM data underpinning thoughts that the US economy is continuing its upwards trajectory, raising the possibility of another near-term rate hike…..
As a longer term view of the direction of the Eur/Usd, I think that this week is likely to be pretty much a “wait and see” affair, with liquidity probably remaining quite thin as traders are unlikely to want to become too involved ahead of the US jobs data, due on Friday (exp 4.7%, +175K).
Beyond that, looking into the first quarter of 2017,