Market Review - 17/05/2017 23:17GMT
Dollar tumbles as U.S. political turmoil triiggers broad-based usd selling
The greenback tumbled across the board on Wednesday, falling to fresh multi-month lows against several peer curencies, as political trumoil grew in the U.S. due to talks that President Trump could face the threat of impeachment.
Reuters reported news emerged on Tuesday that Trump had asked his now-dismissed FBI chief James Comey to end the agency's investigation into ties between former White House national security adviser Michael Flynn and Russia.
Versus the Japanese yen, dollar remained under pressure in Asia and continued to ratchet lower, hitting 112.26 at European open. Price then met renewed selling at 112.55 in European morning and tumbled to 111.24 in New York morning on the greenback's broad-based selloff. Price resumed its intra-day descent and fell to a 3-week trough of 110.80 near the close.
The single currency traded with a firm bias in Europe and climbed to 1.1112 ahead of European open and despite a brief pullback to 1.1081 in early European morning, euro rallied to a fresh 6-month peak at 1.1162 near New York close on dollar's broad-based weakness.
The British pound also traded with a firm bias in Asia and gained to 1.2942. Cable then found renewed buying at 1.2906 in early European morning and rose to 1.2978 in Europe due to a drop in UK unemployment, then to a fresh 7-month peak at 1.2991 in New York morning on dollar's weakness.
The Office for National Statistics said that the rate of unemployment unexpectedly dropped to 4.6% in March, beating expectations for it to remain stable at February's reading of 4.7%. That was its lowest level since 1975.
In other news, EU Brexit negotiator Barnier said 'no intention to end up with no deal with UK, hopes for deal with UK, not against UK; no figures set yet for EU demands that UK pay b4 leaving; real Brexit transition period is now, before withdrawal, and all economic players shud prepare.'
Data to be released on Thursday:
Japan GDP, China House price, Australia employment change, unemployment rate, UK retail sales, U.S. jobless claims and Canada wholesale sale.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.