Direction Of the Market!

[MohammadIrfan]

The FX day in the US session was driven by continued risk appetite from investors, pushing yields and the stock market higher with the greenback following suit in the optimism. The higher beta's rally came to a grinding halt.

The DXY was up 0.4% and while we had a lack of data to start the week off, some Fed chat has been crossing the wires. starting with Fed's Williams, he said price-level targeting has benefits while painting a benign picture of Fed rate hikes, albeit highlighting the strength of the U.S. economy. Then, Fed's Bostic said that the Fed should be cautious if yield curve continues to flatten while arguing that three rate hikes in 2018 may be too much.

[danish555]

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[janitanha]

China�s currency regulator, the State Administration of Foreign Exchange (Safe), cited gains in the value of non-dollar currencies for last month�s rise and said the nation�s economic performance had contributed to stable cross-border capital flows for the year. Looking ahead, Safe predicted the reserves, and the balance of payments, would be �stable�.

[MohammadIrfan]

The EUR/USD pair is consolidating at the top; it has already finished the first structure of the descending impulse. Possibly, today the price may grow to reach 1.2049, thus forming another consolidation range. If later the instrument breaks this range to the downside, the market may fall towards 1.1915 (the main scenario); if to the upside – extending this wave up to 1.2113 (an alternative one).

[MohammadIrfan]

The recent trend of dollar-selling is taking a bit of a pause,” said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore, adding that the dollar drew some support after U.S. Treasury yields nudged higher on Friday.

The U.S. currency had begun 2018 on the defensive, after the dollar index fell about 9.9 percent in 2017, its weakest performance since 2003.

A synchronised global recovery has prompted other countries’ central banks to start moving towards tighter monetary policy in recent months, helping bolster their currencies.

After the U.S. jobs data, traders of U.S. short-term interest rate futures continued to bet the Fed would raise interest rates two times this year, including a probable increase in March.

Comments by some Fed officials on Friday and over the weekend suggested the U.S. central bank remained on track to raise interest rates in 2018.

[MohammadIrfan]

LONDON, Jan 8 (Reuters) - The euro dipped a quarter of a percent on Monday as investors took profits after a recent rally though markets remain optimistic about the outlook for the single currency after lackluster U.S. jobs data.

With foreign exchange markets extending the sell-dollar theme from late last year and Asian stocks creeping towards all-time peaks, the euro’s dip was taken as an opportunity to buy the single currency by some investors.

“The overall trend is minutely supportive for the U.S. dollar as we are seeing a global recovery led by China and Europe and there is a lot of cash sitting on the sidelines waiting to buy European assets,” said Peter Chatwell, head of European rates strategy at Mizuho International in London.

[danish555]

when the traders judge the market trend and direction properly they trade according to market trend and market direction they make unlimited money they should trade with the market trend then they could make income.

[MohammadIrfan]

The FX day in the US session was driven by continued risk appetite from investors, pushing yields and the stock market higher with the greenback following suit in the optimism. The higher beta's rally came to a grinding halt.

The DXY was up 0.4% and while we had a lack of data to start the week off, some Fed chat has been crossing the wires. starting with Fed's Williams, he said price-level targeting has benefits while painting a benign picture of Fed rate hikes, albeit highlighting the strength of the U.S. economy. Then, Fed's Bostic said that the Fed should be cautious if yield curve continues to flatten while arguing that three rate hikes in 2018 may be too much.

"US 10yr treasury yields eked a slightly higher range of 2.46%-2.49% - the latter the highest since 26 Dec. Short-maturities yields remained steady, 2yr treasury yields ranging between 1.95% and 1.97%. Fed fund futures priced the chance of another rate hike in March at 63%," explained analysts at Westpac.

In respect to other currencies, the euro dipped on the back of a record-long CFTC position with 1.1950 under pressure and the price running between 1.1959/52 on the day, closing at 1.1967. GBP/USD was resilient on the session, catching a bounce on the fixing and outdoing its single currency counterpart in the cross that edged lower to a low of 0.8815 on the session. Cable closed at 1.3567 within a range between 23/86 on the same handle.

USD/JPY price action was subdued despite a rally on Wall Street and higher rates and fluctuated between 112.90 and 113.40, closing at 113.06. The Commodity bloc was lower as CRB slides for the second day. AUD retreated as the USD gained, falling from 0.7870 to 0.7827 after opening at 0.7835 after a sharp drop, lead by AUD/JPY. The Kiwi outperformed, managing to hold most of the day's gains and maintaining an elevated range of 0.7156-0.7184. Oil was better bid as crude oil stocks are expected to shrink for the eighth week and upside was underpinned by Friday's production data; gold was down on dollar's resurgence while copper positioning moved to a new record on macro optimism.

[MohammadIrfan]

Comments by some Fed officials on Friday and over the weekend suggested the U.S. central bank remained on track to raise interest rates in 2018.

San Francisco Fed President John Williams told Reuters in an interview on Saturday that the Fed should raise interest rates three times this year given the already strong economy will get a boost from tax cuts, and can tighten more or less aggressively if needed. urn:newsml:reuters.com:*:nL1N1P10F3

Federal Reserve Bank of Cleveland President Loretta Mester told Reuters in an interview on Friday she expected roughly four interest rate hikes this year, as U.S. economic growth picks up and unemployment remains low. urn:newsml:reuters.com:*:nL1N1P01QY

Against the yen, the dollar firmed about 0.1 percent to 113.20 yenJPY= , having traded in a range of roughly 112.00 yen to 113.75 yen over the past month.

The euro held steady at $1.2027EUR= . Having started the year on a firm footing, the common currency rose to $1.2089 on Thursday, nearing a 2-1/2 year peak of $1.2092 set in early September.

The euro faces some headwinds after its recent gains, said Roy Teo, investment strategist for LGT Bank in Singapore.

These include signs that speculative long positions in the euro are "getting overcrowded", potential risks from Italian elections coming up in March, as well as the fact that core inflation in the euro zone remains subdued, Teo said.

Speculators trading currency futures increased their net long positions in the euro 1099741NNET to a record high of 127,868 contracts in the week ended Jan. 2, data from the U.S. Commodity Futures Trading Commission showed. IMM/FX

The Canadian dollar CAD=D3 last traded at C$1.2400 per U.S. dollar, up 0.1 percent from late U.S. trade on Friday.

[MohammadIrfan]

Dollar index firmer, inches up from recent 3-1/2 month lows

* U.S. jobs data showed slower-than-expected rise in payrolls

* But market expectations for Fed policy outlook little changed

(Updates prices, adds comments)

By Masayuki Kitano

SINGAPORE, Jan 8 (Reuters) - The dollar inched higher against a basket of major peers on Monday as data showing slower U.S. jobs growth did little to dent expectations for further Federal Reserve interest rate increases this year.

The dollar's index against a basket of six major currencies rose 0.1 percent to 92.051 .DXY , up from its Jan. 2 low of 91.751, which was its weakest level since Sept. 20.

U.S. nonfarm payrolls increased by 148,000 jobs last month, after a surge of 252,000 in November, according to data on Friday. Economists polled by Reuters had expected a December rise of 190,000. urn:newsml:reuters.com:*:nLNS5CEE4D

Initially, the dollar slipped after the payrolls figures, but later regained some composure.

"The recent trend of dollar-selling is taking a bit of a pause," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore, adding that the dollar drew some support after U.S. Treasury yields nudged higher on Friday.

The U.S. currency had begun 2018 on the defensive, after the dollar index fell about 9.9 percent in 2017, its weakest performance since 2003.