Market News

Friday’s wage report from the US Labor Department helped to send the US Dollar higher in European trading.

Oil prices dropped on Monday as Iranian exports undermined the efforts of OPEC oil producers to decrease production and to limit the global supply.

There will be a very light news schedule this week, even compared to last week which was also a light schedule. The week is likely to be dominated by a public speech from the Chair of the Fed and several items of key U.S. economic data due on Friday.

The US Dollar Index is currently edging up but had earlier hit a 3-week trough after yesterday’s release of US economic data disappointed investors.

The Pound Sterling retreated against the US Dollar and hit a 2-week trough versus the Japanese Yen despite unexpectedly upbeat economic data which only helped to minimize the damage.

The dollar retreated further from the 14-year highs it reached on Tuesday as investors sought to start the New Year with profit taking on fears that the “Trump rally” may be nearing its end.

The Pound Sterling edged higher versus the US Dollar, recovering after a touching a 2-month trough on the first trading day in London after it was learned that the UK’s ambassador to the EU would be announcing his resignation.

The dollar continued its upward climb on Wednesday, reaching towards 14-year highs against the yen and sending Asian shares broadly higher, with Japanese shares enjoying the strongest gains thus far.

The Pound Sterling touched a 2-week peak versus the common currency Euro on the latest economic news which showed a PMI manufacturing reading of 56.1 for December, against expectations of a decline to 53.0.

Oil prices started the year higher on hopes that the agreement between OPEC members and non-OPEC states to cut production would, in fact, reduce the global supply surplus.

There will be a much more significant news schedule this week compared to last week, due to the end of the Christmas and New Year holiday season affecting many global financial centers and major economies.

With most global markets closed on Monday in celebration of the New Year, the open markets in South Korea and India found little to celebrate, trading slightly lower or flat on Monday.

The Euro surged against the US Dollar to a 3-week peak in thin holiday trade, however it is still expected to close out the year lower.

The US Dollar skidded to a 2-week trough versus the Japanese Yen after the release of disappointing economic data put the greenback under pressure and boosted demand for safe haven currencies.

Asian stock prices struggled to end up after profit-taking during Wednesday’s U.S. session caused major U.S. indices to dip.