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FXPrimus’s Daily Market Analysis is provided by their in-house FX Market Specialist, Stavros Tousios.

Trump “Not Thrilled” about Fed’s Hiking Policy, Comments Drive Dollar Down

US President Trump criticized the Fed’s interest rate hike policy, the EU over $5.1B fine imposed on Google and also the PBOC for guiding the Chinese currency lower.

In Europe, Brussels pointed to “doomsday” document in preparation of a “hard Brexit” while the UK released yet another poor economic indicator, adding more pressure to the British Pound but leaving August’s hike probabilities unchanged.

Having had an interesting session on the political arena yesterday, today we may see volatility acting as the market driving force on potential end of week flows and less likely due to economic indicators.

Today’s Important Indicators

Major Market Updates

• EUR/USD – Eurodollar ends session mixed as price rejection at $1.1580 low takes the pair near opening price levels, technicals provide a few bullish signs.
• GBP/USD – British Pound flirts with $1.30 on disappointing UK Retail Sales while EU warns members on “hard Brexit”, price nears golden $1.2890 as bank rate approaches.
• USD/JPY – Dollar reverses gains against Yen following Trump’s comments on Fed’s hiking policy, pair remains bullish medium term and above 111 until bears prove otherwise.
• USOIL – Oil prices remain steady as earlier OPEN-related losses by USD slippage, barrel cost at $67.80, a tad higher than golden $67.40.
• XAU/USD – Gold prices recover recent losses as investors short the greenback following Trump’s comments. Although a fresh 1-year low was made at $1211/oz prices closed near $1222/oz.
• BTC/USD – Bitcoin price firm just by golden cycle for a second session as net longs remain unchanged, investors eye the $8K hurdle but technicals do not support the move.
• US Equities – Netflix slipped for a third session, Apple improved by 0.78%.
• US Indexes – DJ and S&P 500 fell by 0.53% and 0.4%, respectively.
• European Indexes – UK 100 and DE 30 trade 0.19% and 0.04% higher.
• Asian Indexes – ASX 200 rose by 0.35%, Nikkei declined by 0.29% and Hang Seng trades 0.64% higher.