FX & Market News
News Index
By Associated FX Analysis Team

Kantox currency update: geopolitical tensions weigh on the dollar

Published April 12, 2018

The major currency crosses have remained trading sideways during the last sessions, despite the positive economic outlook of the Fed minutes, with the dollar on the defensive amid investors’ concerns about the possibility of a military intervention in Syria.

EUR/USD: recovery stalls below 1.2400. Euro rally from last week’s lows at 1.2215 was capped on Wednesday at 1.2395, although the pair remains steady above above 1.2350 so far. At London market opening times, the EUR/USD is trading at 1.2370.

GBP/USD: hovering around 1.4200. Once again, the pound followed EURUSD price action on Wednesday. Sterling’s recovery from 1.3965 lows lost steam after hitting three-week highs at 1.4225, before pulling back to levels right below 1.4200. At London market opening times, the GBP/USD is trading at 1.4190.

USD/JPY sideways movement around 107.00. The dollar retreated against the safe-haven yen on Wednesday, weighed by marked concerns about a likely military action in Syria and the pair remains trading within a 100-pip range between 106.50 and 107.50   At London market opening times, the USD/JPY is trading at 106.85.


In the Calendar Today

At 11:30 GMT Investors will be attentive to the accounts of ECB monetary policy meeting. Only five months before the QE expiration date, investors will be eager for some info about bank’s plans regarding the bonds buying program. Any comments on that topic might have a strong impact on euro volatility.

At 19:00 GMT BoE Governor Carney’s speech will also be observed with interest. The Bank is expected to hike rates over the coming months -probably in May- and Carney might start announcing it soon. Any comments on that line would increase buying pressure on the pound.

11:30  GMT        ECB monetary policy meeting accounts

 19:00  GMT        BoE: Carney’s speech




Leave a Reply