Category Archive: 4) FX Trends

Main Author Marc Chandler
Marc Chandler
He has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks. After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.
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FX Daily, August 06: Markets Consolidate

2020-08-06

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2020-08-06

EUR/BGN Currency Pair
The Australian dollar powered to marginal news highs for the year as the move against the US dollar continued yesterday. The euro stopped a few hundredths of a cent below the high seen at the end of last week. However, neither sustained the upside momentum and have come back offered today.

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FX Daily, August 5: Corrective Pressures in the FX Market Prove Short-Lived

2020-08-05

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2020-08-05

The drop in US yields to new lows amid paralysis in Washington, except apparently over a lip-syncing app's threat to US national security, sent the dollar back to its lows after a modest recovery in early North American trading yesterday. 

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FX Daily, August 4: Markets Looking for Fresh Directional Cues

2020-08-04

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2020-08-04

Asia Pacific equities rallied after the US shares rallied with the Nasdaq reaching record highs after it and the S&P 500 gapped higher yesterday.  Japan and Hong Kong led the rally with more than 2% gains, while the Shanghai Composite lagged with about a 0.1% gain.

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August Monthly

2020-08-04

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2020-08-04

The dollar's losses accelerated in July, and further declines are likely even if there is short-lived bounce to correct the over-extended technical condition.  We have been arguing for a year that the third significant dollar rally since the end of Bretton Woods was over, but the disruption of the global capital markets in March gave the old bull market one more push.

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FX Daily, August 3: Stronger EMU PMIs Fail to Recharge the Euro’s Upside Momentum

2020-08-03

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2020-08-03

Overview: The capital markets are decidedly mixed today as investors are pulled between rising infections, heightened tensions between the US and China, lack of progress on new US stimulus, and technical forces as the new month begins.

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FX Daily, July 30: Greenback’s Bounce is Likely Short-Lived

2020-07-30

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2020-07-30

A wave of profit-taking is seen through most of the capital markets today, with the exception of the bond market, where yields continue to trend lower.  The US 10-year is now yielding 55 bp, a new low since early March, and the five-year yield set a new record low near 23 bp.  European yields are 2-4 bp lower.

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FX Daily, July 29: Greenback Slips Ahead of the FOMC

2020-07-29

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2020-07-29

Global equity markets are stabilizing today, and the dollar is once again on its back foot. Chinese markets led a mixed regional performance with a 2%-3% gain, while South Korea and Hong Kong markets also advancing. The strength of the yen appears to weigh on Japanese shares.

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FX Daily, July 28: Dollar Bounces, Gold Slips, while Equities Hold Their Own

2020-07-28

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2020-07-28

The main development in the capital markets today is the firmer dollar against nearly all the major and emerging market currencies.  Among the majors, the New Zealand dollar and Swedish krona are the heaviest (~-0.4%), while the Swiss franc and yen are marginally lower.

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FX Daily, July 27: Dollar Slide Continues, while Gold Soars

2020-07-27

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2020-07-27

The US dollar's dramatic sell-off continues. It is off against nearly all currencies.  Among the majors, the Swedish krona and Japanese yen are leading the money, and the euro surged through $1.17.  Emerging market currencies are fully participating, with the JP Morgan Emerging Market Currency Index posting its fifth gain in six sessions.

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Cool Video: Gold and the Dollar

2020-07-25

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2020-07-25

I have been talking with Neils Christensen, editor at Kitco news, for several years about the dollar, gold, and my read of the capital markets more broadly.  We had a chance to discuss recent developments yesterday. I began my career at a small newswire, and Kitco reminds me of it.

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FX Daily, July 24: Strong PMIs Have Limited Impact as Profit-Taking Hits Equities

2020-07-24

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2020-07-24

US stocks stumbled yesterday, and the S&P 500 nearly gave back the week's gains with its roughly 1.25% loss, the largest of the month.  The NASDAQ 100 fell to two-week lows.  Slower cloud growth at Microsoft and a delay in the next generation of chips at Intel were among the drags.

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FX Daily, July 23: Powerful Momentum is Still Evident in the Foreign Exchange Market

2020-07-23

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2020-07-23

The powerful momentum moves in the capital markets continues unabated by escalating US-China tensions and continued spread of the virus. Asia Pacific equities were mixed. Tokyo was closed for a holiday, but several other large markets in the region, like China, South Korea, and Taiwan markets slipped lower, while Hong Kong, Australia, and India advanced.

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FX Daily, July 22: Pang of Uncertainty Spurs Profit-Taking

2020-07-22

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2020-07-22

The optimism among investors appears to have evaporated in the face of new US-Chinese tensions, possible delays in the next US fiscal stimulus, and new record virus infections in Australia and Hong Kong. US stocks had pared early gains yesterday, and the high-flying NASDAQ finished lower after setting new record highs. 

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FX Daily, July 21: Europe and Tech Lift Risk Appetites

2020-07-21

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2020-07-21

Overview: The continued domination of the tech sector and Europe's tentative agreement are lifting equities and risk assets more generally today.  Australia and Hong Kong's 2.3%-2.5% rally led Asia Pacific markets.  The Dow Jones Stoxx 600 is higher for a third session and above its 200-day moving average for the first time since February. 

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FX Daily, July 20: Markets Yawn, Deal or No Deal

2020-07-20

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2020-07-20

Overview: While there are signs that Europe has reached a compromise on the grant/loan issue, the spillover into the markets is quite limited. China, with Shanghai's 3.1% gain, led a few markets in the Asia Pacific region higher, including Japan and India. Most markets were lower, and Europe's Dow Jones Stoxx 600 is a fractionally firmer, recovering from initial losses.

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FX Daily, July 17: Markets Limp into the Weekend

2020-07-17

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2020-07-17

Chinese stocks stabilized after yesterday's sharp fall and most Asia Pacific equity markets, but Tokyo rose today.  European shares are little changed, but the Dow Jones Stoxx 600 is still poised to hold on to modest gains for the third consecutive week. 

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FX Daily, July 16: Equities Slide and the Greenback Bounces After China’s GDP and Before the ECB

2020-07-16

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2020-07-16

Overview:  Profit-taking, perhaps spurred by disappointing retail sales figures, sent Chinese equity markets down by 4.5%-5.2% today, the most since early February.  It appears to be triggering a broader setback in equities today.  The Hang Seng fell 2%, and most other markets in the region were off less than 1%. 

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FX Daily, July 15: The Dollar Slumps and EU Court Rules in Favor of Apple

2020-07-15

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2020-07-15

A recovery in US stocks yesterday, coupled with optimism over Moderna's vaccine, is providing new fodder for risk appetites today.  Equities are being driven higher, and the dollar is under pressure.  Most equity markets in Asia advanced.  China and Taiwan were exceptions, and, in fact, the Shanghai Composite fell for the second consecutive session for the first time in a month.

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Marc Chandler Marc to Market Follow Following .Bearish case for dollar thickens, but bulls are …

2020-07-14

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Marc Chandler Marc to Market Follow Following .Bearish case for dollar thickens, but bulls are tough to find http://ntvforex.com/news/?id=3345e6 . 7 13 2020 11 08 49 AM .A surge in virus cases and record fatalities in several US states dampened the animal spirits at the end of last week. However, few seem emotionally or materially prepared to resist the official efforts to generate favorable financial conditions to facilitate an economic recovery....

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Marc Chandler Marc to Market Follow Following .Risk appetites firm, but the greenback is mixed

2020-07-14

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Marc Chandler Marc to Market Follow Following .Risk appetites firm, but the greenback is mixed http://ntvforex.com/news/?id=8ad403 . 7 13 2020 10 56 52 AM .Overview Equities began the week on a firm note in the Asia Pacific region. The Nikkei gained more than 2%, and the profit taking seen in China ahead of the weekend was a one day phenomenon. The Shanghai Composite rose 1.8%, and the Shenzhen Composite surged 3.5%. Taiwan and South Korea markets...

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