Pip Diddy

Risk appetite weakened in the New York session as equities and precious metals dipped while the lower-yielding U.S. dollar took advantage.

The Aussie and the Kiwi got hammered during today’s morning London session, likely because of crumbling commodity prices. The Greenback, meanwhile, steadily climbed higher. As for the pound, it had choppy price action for the most part, but got bid higher later.

Dollar domination was the name of the game during the Asian session, as forex traders continued to price in the likelihood of a March rate hike from the Fed.

Dollar domination! Bulls picked up on Trump’s spending plans and Fed rate hike talk from earlier in the day and pushed the Greenback higher across the board.

Forex price action in Europe was relatively more subdued compared to the rather lively Asian session. The only real mover was the pound, although the Greenback also managed to extend its gains a little bit during the session.

The dollar lost pips after Trump failed to provide details on his infrastructure and tax plans, but soon turned around when forex players focused on the FOMC members’ hawkish statements instead. Also, Australia just avoided a technical recession!

The Greenback made a solid comeback during the New York session, thanks to a boost from mostly stronger than expected data and more rate hike talk.

Today was another choppy and relatively subdued European session, probably because traders are waiting for what Trump has to say later. There was some risk aversion, though, which gave the safe-haven yen and Swissy a boost.

Mixed economic reports from Japan pushed the yen higher across the board, while overall risk appetite and jitters ahead of Trump’s speech before the Congress weighed on the dollar. Here’s what happened during the forex trading session!

Contrary to his promise of a “phenomenal” announcement on taxes, U.S. President Trump downplayed expectations for his Tuesday speech. A couple of data misses also dampened the dollar’s spirits, but not for long.