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, April 27: Several Developments ahead of the ECB meeting

2017-04-27

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2017-04-27

The ECB meeting and the press conference that follows it is the main event. However, it has had to compete with the Bank of Japan and Riksbank meetings, as well as the further reflection of the tax reform proposals by the Trump Administration yesterday.

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Draghi Does Nothing and Talks about It

2017-04-27

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2017-04-27

Draghi confirms rate on hold and maintains easing bias. Growth risks are becoming more balanced. Inflation has yet to get on a sustained upward path.

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F A C E Interview April 26th 2017 Marc Chandler

2017-04-26

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Marc Chandler being interviewed by Dale Pinkert during the F.A.C.E. Webinar.

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FX Daily, April 26: Dollar Stabilizes Ahead of Trump and ECB

2017-04-26

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2017-04-26

The US dollar was marked down in response to the French election and saw some follow through selling yesterday, but the momentum had slowed, and now it is stalled. The greenback is posting upticks against nearly all the major currencies. There is a good reason to be cautious.

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Weekly Speculative Positions (as April 18): CHF Position Stands at same Level

2017-04-25

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2017-04-25

Speculative Positions Commitments of traders Swiss Franc Apr 24
The net short CHF position stands at 13K contracts (against USD). In the CFTC reporting period ending April 21, speculators to significant positions in the euro, sterling and the Mexican peso. Bulls and bears were took more exposure in the euro and sterling, while in the peso the former added on while later sought cover.

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FX Daily, April 25: Euro Consolidates Gains, Bond Market Sell-Off Continues

2017-04-25

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2017-04-25

The US dollar is again at the fulcrum of the foreign exchange market. The dollar-bloc currencies are under pressure, along with the Japanese yen, while the European complex is posting modest gains. The euro is consolidating in the half cent below $1.09. Yesterday's marked up in early Asia saw the euro complete the 61.8% retracement of the losses since the US election, which was found near $1.0935

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Adam Button talks about the euro and Canadian dollar on BNN

2017-04-24

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In the aftermath of the first round of the French Presidential election, Adam Button from ForexLive stopped in at BNN to talk about the euro. He also spoke about the outlook for the Canadian dollar in light of new rules designed to cool the market.

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FX Daily, April 24: Dramatic Response to French Election

2017-04-24

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2017-04-24

The results of the first round of the French election spurred a dramatic response in the capital markets. Our thesis that there is no populist-nationalist wave sweeping the world is supported by the previous results in Austria, the Netherlands, and now France.

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FX Weekly Preview: Politics and Economics in the Week Ahead

2017-04-24

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2017-04-24

Provided Le Pen and Macron or Fillion make to the second round, the market response to the French election results may be short lived. BOJ, Riksbank and ECB meetings. Spending authorization and some announcement from the White House on tax policy are in focus as Trump's 100th day in office approaches.

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FX Weekly Review, April 17 – 22: Dollar Technicals Trying to Turn, but…

2017-04-23

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2017-04-23

Trade-weighted index Swiss Franc, April 22
While the dollar index had another bad week with a 0.75% less, the Swiss Franc currency index could accumulate the corresponding gains. Main reason is that the EUR/CHF rose over 1.07.

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State of Dollar Bull Market

2017-04-22

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2017-04-22

The dollar market is intact, despite the pullback here at the start of 2017. We have seen similar pullbacks in 2016 and 2015. Divergence remains the key driver.

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FX Daily, April 20: Dollar and Yen Push Lower

2017-04-20

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2017-04-20

With the exception of the yen, the US dollar is lower against all the major currencies. US Treasury yields are firm, extending yesterday's rise a little. This may help keep the dollar straddling JPY109, but unwinding long yen cross positions is helping underpin the other major currencies. The Dollar Index is making a new low for the week and appears poised to test support around 98.85-99..00.

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May’s Early Election Bid Sends Sterling on Roller Coaster

2017-04-20

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2017-04-20

May calls snap election for June 8. Tories running 20 percent point lead over Labour. Next election would be in 2022, after the Brexit negotiations conclude.

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More Thinking about Trade as Pence and Ross Head to Tokyo

2017-04-19

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2017-04-19

Pence and Ross may "feel out" Abe for interest in a bilateral trade agreement. The US enjoys a small trade surplus with countries it has free-trade agreements. Ownership-based framework of the current account and value-added trade suggest the US trade imbalance is not a significant problem.

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FX Daily, April 18: US Dollar Consolidates Yesterday’s Gains

2017-04-18

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2017-04-18

The US dollar is consolidating the gains scored late in the US session yesterday in response to a Financial Times interview with US Treasury Secretary Munchin who seemed to play down the strategic importance of Trump's recent complaint about the greenback's strength.

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FX Daily, April 17: Markets Trying to Stabilize in Holiday-Thin Activity

2017-04-17

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2017-04-17

Financial centers in Europe are closed for the extended Easter holiday. Australian and New Zealand markets were also closed. The drop in US 10-year Treasury yields in early Asia, with a brief push below 2.20%, appears to have kept the dollar under pressure. As the North American market prepares to open, the dollar is softer against the all major currencies and many emerging market currencies.

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Monetary Policy is Important, but US Fiscal Stance Moving Center Stage

2017-04-17

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2017-04-17

Monetary policy is off the table for at least the next two months. Several fiscal issues are coming to a head. Despite the GOP majority in Congress and White House, brinkmanship cannot be ruled out.

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Weekly Speculative Positions (as of April 11): Adding To Foreign Currency Exposure Before Trump’s Talk

2017-04-17

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2017-04-17

Speculative Positions Commitments of traders Swiss Franc April 17
The net short CHF position has fallen to 10K contracts (against USD). In the days before US President Trump expressed concern about the dollar's exchange value, speculators in the futures market mostly added to the gross long foreign currency positions.

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FX Weekly Preview: What to Watch in the Week Ahead

2017-04-17

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2017-04-17

Many observers misunderstood US President Trump's "American First" rhetoric. Trump's earlier writings show that this is not a reference to the 1940s effort to keep the US out of WWII, with its isolationist tint. Rather, Trump's use goes back to the original use by President Harding in the 1920s. It was a rejection of the Wilsonian multilateralism (e.g. League of Nations) and a robust defense of unilateralism.

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