Market News

The dollar held above a recent three-year low against a basket of major currencies on Tuesday, with traders turning their attention to U.S. President Donald Trump’s State of the Union speech and a Federal Reserve policy meeting for catalysts.

The next Bank of Japan governor should maintain the central bank’s ultra-accommodative stimulus, a key part of the “Abenomics” policy mix, an economic adviser to Prime Minister Shinzo Abe said.

Labour demand in Japan rose in December to its highest in more than 40 years, which could give labor unions extra leverage in impending spring wage negotiations.

Canada’s compromise plan to boost NAFTA auto content rules lifted talks in Montreal, but its future looked doubtful after President Donald Trump’s trade chief declared it unworkable on Monday.

Down but not out! The dollar staged a strong, much-needed rebound against its counterparts but market watchers remain wary that it’s merely a pullback or profit-taking ahead of the FOMC.

The dollar rose on Monday against a basket of currencies as U.S. bond yields climbed and traders waited for a Federal Reserve meeting and a U.S. jobs report later in the week, while the euro and pound were both down.

European Union ministers warned Britain on Monday not to fall behind on outstanding divorce matters as they gave their negotiator the mandate for parallel talks with London on the post-Brexit transition.

U.S. consumer spending rose solidly in December as demand for goods and services increased, but the gain came at the expense of savings, which dropped to a 10-year low in a troubling sign for future consumption and economic growth.

The Swissy caught a bid, apparently because of the risk-off vibes in Europe. The pound, meanwhile, got swamped by sellers, supposedly because of renewed Brexit-related jitters.

Sterling edged down against the dollar on Monday, as investors worried about political uncertainty in Britain as it emerged that Prime Minister Theresa May was facing a fresh challenge in pushing through her Brexit plans.

Start your trading prep with a quick review of last week’s forex action from my buddy Pip Diddy, an overview of catalysts lined up for the major currencies, and the charts to watch this week.

The Greenback one big loser last week as dovish statements from Mnuchin, weak U.S. data, and global trade protectionism concerns all contributed to a bearish run for the currency.

Top-tier reports were mostly shrugged off last week as traders focused on NAFTA-related concerns. Will the Loonie react to more catalysts this week?

There were no major economic releases during the Asian trading session, so traders focused on catching up to their U.S. counterparts and this week’s catalysts.

Gold prices eased on Monday as the U.S. dollar gained some lost ground and continued gains in equities weighed on the bullion.

Japan’s financial regulator on Monday ordered Coincheck to get its act together after hackers stole $530 million worth of digital money from its exchange, jolting the nation’s cryptocurrency market in one of the biggest cyber heists.

Brexit-related updates kept the pound afloat in the previous week, and the relatively light U.K. economic calendar could keep the focus on these headlines. 

German coalition updates barely sustained the euro’s climb last week as the focus shifted to the mixed signals from the ECB statement. What’s coming up next?

New Zealand’s weak CPI and risk aversion did a number on Kiwi’s strength last week. Will the comdoll recover this week?

The combo of falling iron ore prices and global trade war concerns weighed on the Aussie early last week. Will this week’s set of economic reports provide any lift this week?