Category Archive: 4) FX Trends

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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Defining and Limiting your Risk. Why is it so important in your trading?

2017-02-02

by Forexlive

I talk a lot about defining and limiting risk in trading. Why is it so important. Watch this video and find out the importance.

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FX Daily, 01 February: Markets Stabilize, Investors Await Signals from US data and FOMC, and POTUS

2017-02-01

by Marc Chandler

2017-02-01

(commentary will be sporadic for the next couple of weeks during a European business trip) The US dollar is consolidating yesterday's losses that were spurred speculation that the US was abandoning the more than 20-year old strong dollar policy. The meaning of that policy was clear to global investors even if it was often parodied.

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Trade is Trump’s Centerpiece

2017-02-01

by Marc Chandler

2017-02-01

Investors are anxiously awaiting more details on the new US Administration's economic policies and priorities. Part of the challenge is that the cabinet represents a wide range of views and it is not clear where the informal power lies, or whose call is it. In terms of economic policy, trade is being given priority. It is seen as the key to the jobs and growth objectives.

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Pressure on Greece Mounts, New Crisis Looms

2017-02-01

by Marc Chandler

2017-02-01

Greece needs to implement its commitments in the next few weeks or it faces a new crisis. The more the government implements its commitments, the less public support it draws. New elections in Greece cannot be ruled out.

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FX Daily, January 31: Markets Look for Solid Footing

2017-01-31

by Marc Chandler

2017-01-31

FX Performance, January 31 2017 Movers and Shakers

The immigration imbroglio in the United States is being cited in various accounts for the price action, including yesterday's drop in the S&P 500, where the intraday loss was the largest since before the election. The drama is also being blamed for the dollar's losses yesterday, which it is consolidating today.

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Trump and the Dollar

2017-01-31

by Marc Chandler

2017-01-31

US official comments on the FX market appear to have increased in frequency. They are mostly warnings about a strong dollar, but not all comments are dollar-negative. Policy is the ultimate driver but comments pose headline risk.

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How to trade the Trump White House right now

2017-01-30

by Forexlive

Way too many people have the Trump trade backwards, they’re focused on the wrong thing. Adam Button talks about what matters to the market and how to trade the US dollar in the first weeks of the Trump Presidency.

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FX Daily, January 30: EUR/CHF falls further to 1.650

2017-01-30

by Marc Chandler

2017-01-30

FX Performance, January 30 2017 Movers and Shakers

The EUR/CHF collapsed once again to 1.0650. This rate broke the 1.0680 - 1.0700 that constituted the previous intervention area. Reasons can be found in the weak U.S. GDP weak, in Trump's foreign trade policy and in the strong Swiss trade balance.

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Adventures in Currency Debasement

2017-01-30

by MN Gordon

2017-01-30

The U.S. dollar, as measured by the dollar index, has generally gone up since mid-2014. The dollar index goes up when the U.S. dollar gains strength (value) against a basket of currencies, including the euro, yen, pound, and several others. Conversely, the dollar index goes down when the U.S. dollar loses value.

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Weekly Speculative Position: Net Short Euro and Yen Are Falling. Short CHF Stable

2017-01-30

by George Dorgan

2017-01-30

Speculative Positions Commitments of traders Swiss Franc - 30.01

Speculators are net short CHF with 13.6K contracts against USD. This is nearly unchanged. But net short of Euro and Yen are Diminishing.

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FX Weekly Preview: Yellen nor Kuroda nor Carney will Take the Spotlight from Trump

2017-01-30

by Marc Chandler

2017-01-30

Fed, BOJ, and BOE meet next week, each may adjust economic assessments in more favorable direction. Key challenge for many investors is the new US Administration. US employment, EMU inflation, Q4 GDP, and China's PMI are among the data highlights.

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FX Weekly Review, January 23 – 28: Dollar Downwards and CHF Upwards Correction, for how long?

2017-01-29

by George Dorgan

2017-01-29

US Dollar/Swiss Franc FX Spot Rate, January 21

The US dollar spent the first month of the new year correcting lower after a strong advance in the last several months of 2016. We argue that the correction actually began in mid-December following the Federal Reserve's rate hike.

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Great Graphic: Mexico and China Unit Labor Costs

2017-01-29

by Marc Chandler

2017-01-29

Unit Labor Costs in China and Mexico 2007 - 2015

Mexico has been gaining competitiveness over China before last year's depreciation of the peso. The depreciation of the peso, and other US actions can contribute to the destabilization of Mexico. An economically prosperous and stable Mexico has long been understood to be in the US interest.

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Plan the trade: A technical look at the EURUSD for the trading week ahead

2017-01-28

by Forexlive

Non- trending transitions to trending The EURUSD traded in a 117 pip range in the last week. That represents the most narrow trading week going back to December 21, 2014. When ranges are narrow, the market is unsure of the direction it wants to go. That will logjam is eventually broken – one way or …

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The Grand Strategy: Fixed Spheres of Influence or Variable Shares?

2017-01-28

by Marc Chandler

2017-01-28

The US has a direct investment strategy for historical reasons. It competes against export-oriented strategies. The FDI strategy does make low-skilled domestic labor compete with low-skilled foreign worker, but skilled workers abroad complement the skilled domestic worker.

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FX Daily, January 27: Week Ending on Mixed Note as Year of Rooster Begins

2017-01-27

by Marc Chandler

2017-01-27

FX Performance, January 27 2017 Movers and Shakers

The Lunar New Year celebration thinned participation in Asia, where several centers are closed. Although the MSCI Asia Pacific Index slipped slightly, it rose 1.5% on the week, the fourth weekly gain in the past five weeks. The Nikkei advanced 0.35%, the third rise in a row. The 1.75% gain for the week snaps a two-week decline.

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US GDP Misses, but Final Domestic Sales Accelerate

2017-01-27

by Marc Chandler

2017-01-27

Net exports was a large drag on growth. Inventories flattered growth. Underlying signal, final domestic demand, increased 2.5% after 2.1% in Q3.

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Are Interest Rates No Longer Driving the Dollar?

2017-01-27

by Marc Chandler

2017-01-27

Many are concerned that the dollar and interest rates have become decoupled. We are not convinced. Correlations, not to be eyeballed, are still robust.

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FX Daily, January 26: EUR/CHF collapses to 1.670

2017-01-26

by Marc Chandler

2017-01-26

FX Performance, January 26 2017 Movers & Shakers

The US dollar is mostly firmer against the major currencies but is confined to narrow ranges, and well-worn ranges at that, but the focus has shifted to the strong advance in equities. Yesterday, the Dow Jones Industrials finally rose through the psychologically-important 20k level, and the S&P 500 gapped higher to new record levels.

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Cool Video: Bloomberg’s Daybreak–Trump and Rates

2017-01-26

by Marc Chandler

2017-01-26

On what Trump's first working day as POTUS, I had the privilege to be on Bloomberg's Daybreak to talk about the wagers on US interest rates in the futures market. In the most recent CFTC reporting week, which ended on January 17, speculators in the 10-year note futures market reduced the record net short position. It is only the second week reduction since the end of November.

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