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, May 01: No Help on May Day, which is also Fed Day

2019-05-01

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2019-05-01

The May Day holiday has shut most markets in Asia and Europe, making for subdued market action. Equity markets that are open, like Australia and the UK, advanced and US shares are trading higher helped by Apple's upbeat forecasts and sales that beat expectations.

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FX Daily, April 30: Dollar Pares more Gains as EMU GDP Surprise

2019-04-30

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2019-04-30

Overview: The S&P 500 set a new record high and close yesterday, but the lift to global markets was not strong enough to overcome the disappointing Chinese PMI.  Although Chinese equities traded higher on ideas that the news will spur additional stimulative measures, other Asian markets were mixed. 

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Cool Video: Q1 US GDP Optics may Mark Near-Term Peak in Divergence Theme

2019-04-30

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2019-04-30

I joined Tom Keene and Francine Lacqua to talk about US GDP with David Riley from BlueBay Asset Management. Here is a link to a 2.5-minute clip. The initial estimate of Q1 US growth was well more than nearly anyone expected. The details were underwhelming as the consumption was halved and the GDP deflator was halved. Final private domestic sales, which strips away inventories, trade, and government spending rose 1.3%, the least more than five years.

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Marc Chandler on the Fed and Financial Instability

2019-04-29

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Subscribe to our podcast here: https://www.financialsense.com/subscribe Financial Sense Newshour speaks to Marc Chandler about the Fed’s role in the business cycle. He says the last three economic downturns were not caused by the Fed but by financial instability. Listen to the full show to also hear from Jonathan Krinsky on the multitude of crosscurrents and …

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FX Daily, April 29: The Busy Week Begins Slowly

2019-04-29

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2019-04-29

Overview: It promises to be an eventful week with the FOMC and BOE meeting, US jobs report and EMU April CPI and Q1 GDP on tap.  However, the week is marked by the May Day holiday in the middle of the week.  Japan's markets are closed all week, while China's markets are closed from mid-week on for an extended holiday.  The week has begun on a decidedly consolidative tone. 

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FX Daily, April 26: Greenback Consolidates Ahead of Q1 GDP

2019-04-26

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2019-04-26

Overview:  The equities are finishing softly after the rally stalled in the middle of the week.  The large markets in Asia fell, led by China, and the MSCI Asia Pacific Index fell for a third session, the longest losing streak in two months.  Europe's Dow Jones Stoxx 600 ended an eight-day advance with a two-day loss coming into today where it is a little softer. 

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It’s all about oil for the Canadian dollar now

2019-04-25

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Adam Button speaks about the Canadian dollar in the aftermath of the Bank of Canada decision. Adam talked about fading the spike in USD/CAD after the statement but before the press conference. That proved to be prescient as USD/CAD fell back to 1.3457 from 1.3500 at the time this was aired due to less-dovish commentary …

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FX Daily, April 25: Equities Waiver, the Dollar Does Not

2019-04-25

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2019-04-25

Overview:  After closing at record highs on Tuesday, the S&P 500 slipped yesterday, and the Dow Jones Stoxx 600 snapped an eight-session advance.  Asia followed suit, with the Shanghai Composite posting its biggest loss (~2.4%) in over a month.  It is off about 4.6% this week, which if sustained tomorrow, would be the largest loss in six months.

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FX Daily, April 24: Dollar Bloc in Focus, while Germany’s IFO Disappoints

2019-04-24

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2019-04-24

The record high close for the S&P 500 failed to lift global equities. Far East trading was mixed. The Nikkei opened strong and closed weaker, while the Shanghai Composite began softer and closed firmly. Australian shares and bonds rallied on the back of mild inflation, while the Australian dollar tumbled.

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FX Daily, April 23: Oil Extends Gains While Markets Await Fresh Incentives

2019-04-23

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2019-04-23

Overview: Financial centers that have been closed for the extended holiday have re-opened, but the news stream is light and market participants are digesting developments and positioning for this week's central bank meetings and the first look at Q1 US GDP. The US decision to end exemptions to the embargo against Iran led to a surge in oil prices, which are extending gains to new six-highs today.

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Cool Video: Discussion of the Deflationary Risks in Japan and Brexit

2019-04-23

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2019-04-23

I joined CNBC Asia’s Amanda Drury and Sri Jegarajah via Skype earlier today as the new week was beginning in Asia. In this three minute clip, we discuss the outlook for the BOJ and sterling. Most of the rise in Japan’s inflation is due to food and energy prices. Despite an aggressive balance-sheet expansion effort, the BOJ has missed its target by a long shot.

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FX Daily, April 22: Surge in Oil Punctures Holiday Markets

2019-04-22

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2019-04-22

Overview: With many centers closed for the extended holiday, the calm in the global capital markets has been punctuated by reports that the US is considering ending its exemption for eight countries to have bought Iranian oil over the past six months.  The waivers were to end on May 2, but previously it was thought that a couple of waivers, like for China and India, would be extended.

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FX Weekly Preview: Six Events to Watch

2019-04-22

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2019-04-22

The divergence thesis that drives our constructive outlook for the dollar received more support last week than we expected. A few hours after investors learned that Japan's flash PMI remained below the 50 boom/bust level, Europe reported disappointing PMI data as well. And a few hours after that the US reported that retail sales surged in March by the most in a year and a half (1.6%).

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FX Daily, April 19: Holiday Note

2019-04-19

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2019-04-19

Many financial centers are closed today. These include Australia, India, most European markets, and the US. In Asia, equity markets that were open moved higher. The Nikkei, which gapped higher on Monday, rose 0.5% today for a 1.5% gain on the week. China's Shanghai Composite rose 0.6%, lifting the weekly increase to 2.6%.

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FX Daily, April 18: EMU Disappointment Lifts the Dollar

2019-04-18

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2019-04-18

Overview: A bout of profit-taking in equities began in the US yesterday and has carried through Asia and Europe today. The MSCI Asia Pacific Index fell for the first time in five days, while the Dow Jones Stoxx 600 is snapping a six-day advance.  The Nikkei gapped higher to start the week and a gap low tomorrow would undermine the technical outlook.

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Pound to Swiss Franc rates: UK housing price growth hits 6 year low

2019-04-18

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2019-04-18

We have seen a fairly stagnant market following the Brexit extension until 31st October. Although a key factor on GBP/CHF economic date releases will now gain back some of their impact. Yesterday saw the ease of House Price Growth data and figures dropped to a six year low. The average house price of across the UK grew by 0.6%, but property prices in the capital fell by 3.8%.

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FX Daily, April 17: Veracity of Chinese Data Questioned, but Lifts Sentiment Nevertheless

2019-04-17

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2019-04-17

The veracity of Chinese data will be questioned by economists, but today's upbeat reports round out a picture that began with stronger exports and a surge in lending. Chinese officials, we argue, had a "Draghi moment" and decided to do "whatever it takes" to strengthen the economy in the face of US tariffs and during the 70th anniversary of the Revolution.

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Cool Video: Trump Ahead in 2020?

2019-04-17

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2019-04-17

Marc Chandler
First, I tried playing down the significance of Goldman's call. The markets have anticipated this. redictIt.Org has shown the President to be an easy favorite since the start of the year. Charles Payne, the host, dismissed these results because he said they reflect professional gambler. I don't know if that is true or even relevant (ad hominem?).

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FX Daily, April 16: The Dollar and Stocks Catch a Bid

2019-04-16

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2019-04-16

Amid light news, global equities are moving higher In Asia, the Nikkei rose to a new high since early December, while the Shanghai Composite rose 2.3% and posted its highest close since March 2018. European equities are solid, with the Dow Jones Stoxx 600 moving higher for the fifth consecutive session.

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FX Daily, April 15: Redemption Monday

2019-04-15

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2019-04-15

The holiday-shortened week is off to a slow, tentative start. The surge of the S&P 500 before the weekend failed to inspire today. Asia markets were mostly firmer, led by Japan, while China, Hong Kong, and Singapore moved lower.

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