Fundamental Analysis

Dollar firmer as investor focus shifts to Fed

Published on 2018-12-14 11:18 Share
Dollar firmer as investor focus shifts to Fed

Asian shares tumbled on Friday after China reported a set of weak data, fanning fresh worries of a slowdown in the world's second-biggest economy and leaving investors fretting over the wider impact of a yet unresolved Sino-U.S. trade dispute.

The ECB formally ended its 2.6 trillion-euro crisis-fighting bond purchase scheme on Thursday. However, monetary policy is most likely to remain accommodative as ECB president Mario Draghi warned that the euro area's growth outlook is likely to remain weak amid threats of a global trade war and the prospect of a hard Brexit.

The dollar firmed against most major counterparts on Friday as investor focus shifted to an expected U.S. interest rate hike next week, although gains are likely to be capped on greater uncertainty about next year's policy outlook. Market participants are now turning their attention away from immediate global trade issues to the Federal Reserve's Dec. 18-19 meeting. The Fed is widely expected to raise interest rates by 25 basis points, its fourth rate hike this year though greater focus will center on the policy outlook for 2019, over which there is more uncertainty.

In the currency market, EURUSD stuck in its well-worn $1.1300-$1.14 00 range over the past few days, GBPUSD fell 0.4 percent to $1.2615, on track to post its fifth consecutive week of losses. It was down 0.9 percent so far this week. USDJPY stood at 113.57 yen, flat on the day but above this week's low of 112.245 set on Monday. In commodity markets Oil prices gave up some of their gains following inventory declines in the United States and expectations that the global oil market could have a deficit sooner than they had previously thought.U.S. crude futures edged down 0.6 percent to $52.27 per barrel and Brent crude slipped 0.8 percent to $60.94, after both gained more than 2.5 percent on Thursday

More Posts

British Prime Minister May survived a no-confidence Brexit vote 2018-12-13 10:35

Asian equity markets surged on signs of easing Sino-U.S. trade tensions and expectations that China will step up efforts soon to support its cooling economy

Oil Prices Rise Amid Disruptions to Libyan Oil Exports-OPEC-led cuts 2018-12-12 11:28

Asian equity markets are trading higher Wednesday, following the tone set by their U.S. counterparts on Tuesday

Pound near 20-month low on Brexit setback 2018-12-11 11:12

In commodity markets Oil prices edged up on Tuesday in Asia after falling 3% in the previous session as a cut promised by Saudi Arabia and its allies in the enlarged OPEC+ failed to boost oil prices

The Brexit Vote in Focus despite not being the Final word 2018-12-10 09:54

A very eventful week starts rather slowly with the big event today being the last day of the Brexit debate ahead of the vote in the UK House of Commons

The OPEC meetings and NFP in focus today 2018-12-07 11:42

Trade deal developments between the US and China have been important market drivers this week, with the most noteworthy being Saturday's truce and yesterday's arrest of Huawei's CFO

U.S. stock futures slip- Canada arrests Huawei CFO 2018-12-06 10:38

U.S. stock futures and Asian shares tumbled on Thursday after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, fanning fears of a fresh flareup in tensions between the two superpowers.

Dollar Up on Broad Based Demand, eyes on Draghi and UK services PMI 2018-12-05 09:42

Today’s session started eventfully amid renewed fears over the US-China trade war, following the US President Trump’s overnight comments, as he threatened to place "major tariffs" on Chinese goods imported into the United States if his administration

Dollar Falls on easing U.S.-China trade worries, focus on Carney’s Brexit testimony 2018-12-04 09:18

Forex today is driven by the US dollar dynamics and the price-action surrounding the Treasury yields and the recent US-China trade truce. The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows

Oil soars on U.S.-China trade war ceasefire & OPEC expected supply cuts 2018-12-03 11:27

Asian shares rallied on Monday after U.S. and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets and battered oil prices.