Dollar falls broadly on Trump's "protectionist" stance: Jan 24, 2017

AceTrader Team AceTrader

Market Review - 23/01/2017 22:24GMT

Dollar falls broadly on Trump's "protectionist" stance

The greenback ended the day lower against majority of its peers on Monday as the lack of clarity over President Trump's economic policies continued to weigh on the buck. However, traders sold the greenback broadly on Trump's protectionist stance.

Versus the Japanese yen, dollar opened lower in New Zealand and then tumbled to 113.17 ahead of European open. Despite a brief recovery to 114.07 in New York morning on comments from Trump, the greenback dropped once more and hit session low at 112.70 in New York session.

U.S. President Trump said 'going to cut regulations, which have gotten out of control; he is very big on the environment but regulations can get in way; promises advantages for companies that make products in U.S.; will expedite factories, companies will get very fast approval to build in U.S.; companies that move abroad will face major border tax on products coming into U.S.; China, Japan mkt difficult to sell U.S. products there.'

The single currency traded with a firm bias on dollar's weakness and gained to session high at 1.0755 ahead of European open before retreating on Trump's comments. However, euro found renewed buying at 1.0706 in New York morning and rebounded to 1.0752. Price later rose to session highs of 1.0769 on renewed usd weakness.

The British pound also traded with a firm bias and gained to 1.2445 in Asia, then to 1.2472 at European open on dollar's broad-based weakness. Despite a brief retreat to 1.2424 in Europe, cable rose to a fresh 1-month high at 1.2494 in New York morning, later, cable rallied to 1.2546 at New York close.

Data to be released on Tuesday:

Japan manufacturing PMI, France manufacturing PMI, services PMI, German manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, UK PSNB, PSNCR, U.S. redbook, manufacturing PMI and existing home sales. U.K. Supreme Court to deliver Brexit ruling around 09:30GMT.

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.