Market News

The RBA may have printed its policy decision earlier today, but forex traders had their eyes on other catalysts. Here’s what’s up!

Oil prices largely held on to gains on Tuesday after posting the biggest rise in six weeks a day earlier, buoyed by moves by Saudi Arabia’s crown prince to tighten his grip on power and rising tensions between the kingdom and Iran.

The dollar sagged on Tuesday, knocked away from an eight-month highs versus the yen down as Treasury yields slipped on uncertainty over whether the Republicans can pass their tax bill in a timely manner.

The latest COT report shows that USD continued to take ground from most of its peers, with EUR and CAD being the most vulnerable while GBP managed to fight back. Also worth noting is that large players became net bearish on NZD again.

Republican lawmakers on Monday began revising their proposed overhaul of the U.S. tax code, as Democrats pointed to the loss of popular deductions as proof the legislation was an assault on the middle class.

Prime Minister Theresa May’s government said it would submit legislation to parliament on Tuesday needed to let Britain pursue an independent trade policy once it leaves the European Union.

Dollar traders priced in the likelihood of a less hawkish FOMC after policymaker Dudley announced his retirement while the Loonie drew support from an upbeat Ivey PMI.

The Canadian dollar strengthened to a 12-day high against its U.S. counterpart on Monday as oil climbed, while investors awaited a speech on Tuesday from Bank of Canada Governor Stephen Poloz.

The Federal Reserve Bank of New York confirmed on Monday that William Dudley, among the most influential monetary policymakers throughout the financial crisis and its aftermath, expects to retire by mid-2018, raising another question over leadership at the U.S. central bank less than a week after President Donald Trump chose a new Fed chief.

Oil jumped to its highest in over two years on Monday as Saudi Arabia’s crown prince cemented his power through a crackdown on corruption, while world shares eased a notch and major currencies traded in tight ranges.

EUR got whupped across the board and was the only real mover during today’s steady morning London session. AUD is worth noting as well since it apparently took directional cues from rising gold prices and edged out all its forex rivals.

European shares edged lower on Monday after a strong run, with declines in Asia weighing as some earnings disappointments also took the shine off early deals.

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Gold prices on Monday held near a one-week low hit in the previous session, as the dollar firmed after largely upbeat U.S. economic data reinforced the prospects of another rate hike by the Federal Reserve next month.

U.S. President Donald Trump vowed on Monday to push for a free and balanced trade partnership with Japan after decades of “massive trade deficits” but said relations with close ally Tokyo were “better than we have ever had.”

A dovish BOJ minutes weighed on the yen in early Asian session trading, while a disappointing inflation expectations report also put Kiwi on the defensive.

Asian shares hovered near decade highs on Monday as strong U.S. economic data and corporate earnings supported global stocks while major currencies held in tight ranges.

Oil prices hit their highest levels since July 2015 early on Monday as markets tightened, while Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown.

Britain’s economy will grow more slowly in the short term if the country fails to secure a future trading deal with the European Union after Brexit, Bank of England Governor Mark Carney said on Sunday.

Despite a ton of reports and events, directional movement wasn’t really very strong this week. Still, it’s worth mentioning that NZD came out on top while GBP was at the bottom of the forex heap.