Market News

The US Dollar recovered some of its previous day’s losses which occurred after one Federal Reserve Bank official cautioned the Fed on removing economic support too quickly.

Fed Governor Lael Brainard’s speech on Monday supported the view that the U.S. Federal Reserve would leave interest rates unchanged next week, a note which helped global markets rebound off their recent lows.

The Japanese Yen took the lead among its peers in Monday trading as investors took flight to safety in the wake of a sell-off in global stocks.

Asian stocks fell sharply on Monday, their largest setback since June, on renewed fears of a U.S. interest rate hike as early as next week.

There will be a similar news schedule this week compared to last week, dominated by key central bank actions concerning the British Pound and Swiss Franc.

In the early trading session in Asia, the US Dollar eased away from earlier highs against the Japanese Yen and looks to post a loss for the week as uncertainty grows regarding the Fed’s monetary policy.

The Japanese Yen managed to hold steady against the US Dollar in Tuesday trading and keeping the recent gains following yet another policy speech from a Bank of Japan official.

Oil prices soared more than 1.5 percent during Thursday’s Asian session after U.S. crude stocks dropped by 12.1 million barrels last week, according to data from the American Petroleum Institute.

The Pound Sterling was under some pressure but remained close to the recently struck 7-week peak versus the US Dollar as FX traders await Mark Carney’s testimony at the Inflation Report hearings for an indication of the timing on the next Bank of England interest rate cut.

Asian shares traded mixed during Wednesday’s session, following Tuesday’s reports from the U.S. Institute for Supply Management (ISM) that the non-manufacturing purchasing manager index (PMI) fell from 55.5 in July to 51.4 in August, its lowest point since 2010.

Among the major currencies traded, the Aussie Dollar was the day’s largest gainer as traders end their summer holidays.

In a widely expected announcement on Tuesday, the Reserve Bank of Australia announced its intention to keep its cash rate stable at 1.5 percent.

Crude oil prices have already see-sawed by 5.56% since Tokyo opened the week’s business some hours ago

There will be a somewhat heavier news schedule this week compared to last week, dominated by key central bank actions concerning the Euro, Canadian Dollar and the Australian Dollar.

Friday’s slew of key U.S. economic data came in below consensus forecasts on all accounts.