Market News

The U.S. dollar gained on the yen on Monday as investors relaxed safe-haven trades in the wake of the failed coup in Turkey.

Markets are still focused on the better than expected U.S. data last Friday which pushed the major U.S. equity index to a weekly close at an all-time high. Markets are quite active so it is likely to be a good trading market this week. Get the economic calendar for the week of July 18, 2016 here.

The U.S. dollar responded immediately to the attempted military overthrow of the Turkish government on Friday by gaining as much as 5.5 percent against the Turkish lira and then settling at 4.72 percent by the end of the trading day.

The dollar rose to near a three-week high against the yen on Thursday and fell near a two-week low against sterling, on news of the surprise decision from the Bank of England to keep interest rates unchanged.

Markets were surprised today when the Bank of England announced that it would be keeping its Base Rate of 0.50% and Asset Purchase Facility of 375 billion pounds unchanged.

The Japanese Yen was broadly lower on Thursday, pushed there by improved sentiment among global equity investors.

Theresa May became the second female Prime Minister of England Wednesday and promised to continue predecessor David Cameron's "true legacy" of social justice.

The Japanese Yen regained lost ground on Wednesday now that investors’ risk appetite has improved. The Yen had recently notched its largest 2-day decline in nearly 2 years, losing 4% versus the US Dollar, just since the beginning of the trading week.

The pound rose as much as 0.7 percent to $1.333, the highest level since July 4, and was 0.5 percent stronger at $1.3313 as of 7:03 a.m. Wednesday in London.

The Pound Sterling edged higher after Theresa May was appointed as the heir apparent to David Cameron, the outgoing UK Prime Minister.

The yen continues to tumble, hitting a one-week low versus the dollar on Tuesday as gains in equity markets helped spur selling of the yen which had risen recently on safe haven demand after Britain's vote to leave the European Union added to worries over global growth.

The Pound Sterling slipped against the US Dollar during Monday’s trading session and headed back towards the recently struck 31-year low.

Following a landslide victory by Prime Minister Shinzo Abe's ruling coalition on Sunday, Japan is expected to set into motion a new set of economy-spurring measures.

There is a lighter news schedule this week, which includes input from central banks concerning the GBP and CAD, as well as some fairly important U.S. economic data later in the week. The key days this week are likely to be Wednesday, Thursday and Friday. Get the economic calendar for the week of July 11, 2016 here.

The U.S. dollar showed strength last week. Non-farm payroll released on Friday indicated that the labor market had snapped back from a downwardly revised 11k jobs (-6k private sector) to 287k (265k private sector), the strongest employment gain in eight months.