Pip Diddy

Kiwi made a strong comeback last week over global trade optimism and less hawkish FOMC sentiments. Will the comdoll maintain its bullish trend this week?

Trading conditions were still relatively subdued during the London session. However, the session wasn’t a complete snooze fest since some themes were playing out, namely USD strength and AUD weakness.

It was a pretty choppy day for the Asian markets, as traders price in mixed signals from the U.S. and traders take profits ahead of the Trump-Xi meeting this weekend.

Traders seemed to feel uneasy ahead of the G20 Summit due to – yep, you guessed it – resurfacing trade jitters from Trump’s remarks. 

The Aussie was the one currency to rule them, likely because of the risk-friendly vibes in Europe. The pound, meanwhile, got a severe beating across the board, thanks to the growing Brexit-related fears.

Asian markets extended the risk-friendly vibe from the previous session as they priced in Powell’s surprising shift from a hawkish stance.

There was a lot on Uncle Sam’s docket for the session, but all eyes and ears were on Fed head Powell’s testimony when he signaled that rates are close to neutral.

Price action was rather choppy for the most part. However, GBP pairs were clearly on the move since they caught a bid when Philip Hammond defended Theresa May’s Brexit deal.

Traders were cautiously optimistic during the Asian session, as they price in possible trade-related progress during Trump’s meeting with Xi Jinping this weekend.

A bit of risk-taking returned to the financial markets as Trump administration officials suggested that a trade deal with China might still be possible.