Market News

The dollar index has dropped since the NY close yesterday as players that have been long USD are ringing the till with the realization that Congressional approval is required for tariffs to be finalized and a growing number of GOP members voicing concern & outright disapproval of their Administration’s plans.  Adding to this are reports

Italian elections were the main focus over the weekend where no clear winner emerged resulting in choppy trade and the U.S. dollar still under pressure against most currencies.  Trade war rhetoric is beginning to ramp up with Chinese political advisors urging a response to proposed U.S. tariffs while U.S. politicians are piping up calling the

The dollar index has continued to rise albeit marginally as we await further testimony from FED Chair Powell beginning at 10 AM EST.  If Powell beats the drum signaling continued growth in the U.S. economy with steady hikes the market will take that to mean 3 more moves in 2018 and the dollar will rise.

The U.S. dollar is broadly higher hitting a 3 week high after FED Chair Powell presented a bullish outlook on the U.S. economy prompting markets to speculate on four rate hikes in 2018 from the central bank.  A move and daily close above 90.56 on the dollar index will embolden dollar bulls to add long

Focus will be on today’s testimony from new FED Chair Powell on the Semi Annual Policy Report before the House Services Committee in Washington beginning at 8:30 AM EST.  He will read a prepared statement then the committee will hold a question & answer session.   Since nothing is scripted there will be headlines released in

Volatility continues in FX markets with the dollar index deteriorating after failing to sustain gains above the 90.00 level last week (see chart).  As players attempt to disseminate whether the FED will hike 3 or 4 times in 2018 the fate of U.S. Treasuries vacillates until a clearer picture emerges.  U.S. data releases of note

After yesterday’s disappointing retail sales data for Canada rocked the Canadian dollar all eyes are focused on today’s CPI release.  A low inflation print will see the Canadian dollar get hammered against the USD and all crosses as market participants are ready to pounce.  Conversely a high number will see CAD/USDS rate spreads tighten and

Statements from FED member Bullard & the FOMC minutes caused a whipsaw movement in equity and FX markets yesterday that eventually led to a stronger U.S. dollar prevailing while equities declined.   “St. Louis Federal Reserve President James Bullard cautioned that investors may be “getting ahead of themselves” in anticipating four rate hikes from the central

The U.S. dollar continues to grind higher across the board supported by rising U.S. Treasury yields as the market anticipates a March rate hike from the FED.  This afternoon’s 2 PM EST release of the minutes from the last FOMC meeting will be the next piece to the puzzle for players to decipher.  Weaker manufacturing