The euro has been stuck in a trading range since November as growing weakness in the euro zone economy offsets dwindling expectations the Federal Reserve will raise U.S. interest rates again this year. "Generally the mood is still quite positive on the outlook for trade," said Adam Cole, a currencies analyst at RBC Capital Markets, adding that he thought the risk-on mood would continue. You have a background of quite decent growth and a Fed that is putting rates on hold." However, he said a better way to play the Fed's pausing of rate increases was in dollar/yen, as more Japanese investors choose not to hedge their purchases of dollar-denominated assets because they can already earn a decent yield after last year's U.S. rate increase.
LONDON MARKETS London markets were down on Monday, losing some of the advances made last week, with trading volumes potentially lower due to a U.S. holiday. Investor concerns remain over trade negotiation progress between the U.
It slid to 71.515 per dollar Monday, from as strong as 69.23 in early January, and traded at 71.4450 at 3:15 p.m. in Mumbai. “The risk for the India story, which is keeping the dollar well bid vis-a-vis rupee, is higher oil, followed by Kashmir tensions and the political uncertainty,” said Ashish Vaidya, head of trading at DBS Bank Ltd. in Mumbai. Losses in Indian assets have deepened since Thursday when a suicide bomber rammed his explosive-laden vehicle into a bus ferrying security forces -- the worst attack in Kashmir in decades.
Risk appetite delivers early moves across the riskier asset classes. With a light economic calendar, vehicle sales out of China will be of interest.
Investing.com -- Foreign exchange markets got off to a slow start Monday, with trading set to remain subdued due to a sparse data calendar in Europe and public holidays in North America.
Investing.com - Gold prices ticked higher while the U.S. dollar slipped on Monday in Asia, as traders digested some positive trade headlines from over the weekend.
Investing.com – The Chinese yuan gained against the U.S. dollar while the greenback traded slightly lower on Monday in Asia, as the prospects of a Sino-U.S. trade deal improved investors’ appetite for riskier assets.
The evidence is in and we have to conclude that gold isn’t breaking sharply because the U.S. Dollar is not that strong. Therefore, demand for dollar-denominated gold should not be dropping as one may think. The data clearly shows that as a gold trader, you shouldn’t be worried about the U.S. Dollar at this time, but rather the Euro.
Judging from the way the dollar index is weighted, the best bet for another surge to the upside will be a weaker Euro, Japanese Yen and British Pound.
The ECB, the FED, and the RBA release meeting minutes in the week, as the markets look for any more signs of a possible recession. Trade talks also resume.
Investing.com - This week precious metal traders will closely monitor movements in the U.S. dollar, one of the biggest drivers for gold, with U.S.-China trade talks continuing in Washington and Federal Reserve minutes and U.S. economic reports on tap.
Investing.com - Despite a holiday-shortened week in the U.S. the economic calendar for this week is busy, with U.S.-China trade talks continuing in Washington and Federal Reserve minutes and U.S. economic reports on tap.
Trade talks delivered strong gains across the European and U.S equity markets last week. What’s on the horizon for the DAX and EUR?
Risk appetite towards Latin America was broadly boosted by Mary Daly suggesting the U.S. Federal Reserve may hold off on raising borrowing costs in 2019. Mexican officials said the government would infuse $3.6 billion into ailing state oil firm Pemex, aiming to bolster its finances and avert a further credit downgrade. Daly's comments enabled the peso to wipe away the losses it incurred after the announcement on Pemex.
Bitcoin prices slump midday Friday, with one expert cautioning that further declines were on the horizon for the world’s most popular digital asset.
Speculators reduced their bullish bets on the U.S. dollar in the week ended Jan. 22 to the smallest position since September, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday. In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the U.S. dollar posted a net short position valued at $27.55 billion, down from $32.03 billion, a week earlier.
The U.S. dollar loses its strength in late Friday trading amid President Donald Trump’s signing of a spending bill that will avoid a renewed partial government shutdown and his declaration of a national emergency on border security.
President Donald Trump has sent a letter to the House and Senate informing them that he has declared a national emergency. The declaration allows the secretary of defense to order units or reservists to active duty to support Department of Homeland Security activities at the southern border and to "engage in emergency construction as necessary to support the use of the Armed Forces and respond to the crisis at our southern border."
European stocks finish sharply higher Friday, helping the pan-European benchmark produce its best weekly gain since early November, as investors cheer signs of progress on a U.S.-China trade deal.
Gold markets fell a bit during the week but found support underneath the turn things around and form a bit of a hammer. The hammer of course was preceded by another one, showing just how resilient the market has been.
The US dollar rallied again during the week, breaking towards the 61.8% Fibonacci retracement level. However, we are starting to run into a bit of resistance, which of course makes sense as the Japanese yen is a bit of a safety currency.
The British pound has fallen again during the week but is testing a rather important area on the chart that could cause a lot of market reaction, if we can get the proper headlines right along with it.
The British pound went back and forth during the Japanese yen during the trading week, as we continue to see a lot of noise out there. However, we have recently seen a massive turnaround, and I think it is going to be crucial to the future of this market.
The Euro drifted a bit lower during the week as we continue to see concerns about the German economy and the global economy as well. Ultimately, I think that the market does have a significant amount of support underneath though.