Forex

GBP/USD WEEKLY OVERVIEW

The dollar dipped for the fourth day running against the basket of currencies used to measure its broader strength on Monday as reaction to a G20 summit dominated by the Trump administration’s protectionist bent extended last week’s sales. A vote on Republican healthcare as a litmus test of US President Donald Trump’s ability to legislate in Congress and deliver on tax and spending promises. Trump was set to make a final push in the House of Representatives to secure the votes to begin dismantling Obamacare, with signs that enough republicans might defect to jeopardize on of the top legislative priorities. On Thursday, Trump failed to close the deal with Republican lawmakers on how to dismantle Obamacare, forcing the House of Representative to delay a vote on healthcare bill that was supposed to be his first legislative win. The day had been designed as a big symbolic win for conservatives.

Sterling fell from a three-week high against the dollar on Monday on the news Prime Minister Theresa May will trigger Britain’s divorce proceedings with the European Union on March 29, launching two years of negotiations. Britain intends to invoke Article 50 of the Lisbon Treaty – the mechanism for starting its departure from the bloc.

The BBA’s latest high street banking data shows that household borrowing of Pound 13.4 billion in Feb was 4.6% higher than in the same month last year.

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EUR/USD WEEKLY OVERVIEW

The euro gained against the greenback, rising to its highest since Feb 2, boosted by French presidential candidate Macron’s performance in a TV debate. The euro was up 0.74 percent to $1.0816. Any news between now and French election next month that suggests fading risk of a Le Pen victory would probably be supportive for the euro

A stronger euro weighed on the dollar index, after centrist Emmanuel Macron’s performance in a TV debate boosted a view he would win France’s presidential race over the far right’s Marine Le Pen.

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USD/JPY WEEKLY OVERVIEW

The dollar dipped to a near four-month low against the Japanese yen on Tuesday as concern about how quickly the Trump administration can implement regrowth policies pushed stocks lower and kindled safe-haven demand for the Japanese yen. The dollar fell 0.9 percent to 111.55 yen, its lowest since Nov.28.

On Wednesday it fell to low of 110.76 with nervousness deepening ahead of a key healthcare vote on Thursday.

On Friday Bank of Japan (BOJ) Governor Haruhiko Kuroda said there is ‘no reason’ to raise the bank’s bond’s yield target now with inflation far from its 2 percent target offering his strongest denial to date of the chance of withdrawing its massive stimulus anytime soon.

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GOLD WEEKLY OVERVIEW

Gold prices scaled a two-week peak on Monday as dollar slid to a six week low after G20 weekend summit dominated the US administration protectionist stance on global trade.

Gold has been rising since last Wednesday when the dollar dropped after the US Federal Reserve raised interest rates but stopped short of predicting a sharper acceleration in monetary tightening over the next two years. Spot gold rose 0.3 percent on Monday to 1,231.45 an ounce by 1450 GMT.

A lack of concrete policy from Trump’s administration is increasing gold’s attraction as a safe-haven investment.

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OIL WEEKLY OVERVIEW

Oil prices slipped on Monday, despite news that OPEC was supportive of extending a six-month deal to cut output as investors continue to grapple with worries about growing US oil output and high inventories.

Britain has awarded 25 companies for oil gas exploration in previously untapped waters and announced a new licensing round for mature areas to be held in late May or June the Oil and Gas Authority (OGA).

Oil prices dipped on Thursday, struggling to recover from four-month lows because of investors’ concerns that OPEC-led supply cuts were not yet reducing record US crude inventories.

Oil ministers from OPEC and some non-OPEC states meet on Sunday in Kuwait where they are expected to discuss compliance.

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[box type=”note” align=”” class=”” width=””]DISCLAIMER: This report has been prepared by ISMAR financial. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. This document is only for Reading information.[/box]