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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Did Mnuchin Signal a Policy Shift Today?

2018-01-27

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2018-01-27

Did US Treasury Secretary Mnuchin signal a change in the US dollar policy? Probably not. As Mnuchin and President Trump have done before, a distinction was drawn between short- and longer-term perspectives. In the short-term, a weaker dollar says Mnuchin, is good for US trade and "other opportunities". In the longer-term, Mnuchin explicitly acknowledged, "the strength of the dollar is a reflection of the strength of the US economy."

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FX Daily, January 26: Trump-Inspired Dollar Short Squeeze Fades Quickly

2018-01-26

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2018-01-26

It was dramatic. Following the BOJ and ECB's rather mild rebuke of dollar's depreciation, US President Trump cautioned that his Treasury Secretary comments were taken out of context, and in ant event, he, the President ultimately favored a strong dollar. The dollar, which had continued fall after Draghi's post-ECB meeting comments, shot higher in the US afternoon in response to Trump's comments.

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FX Daily, January 25: And Now, a Word from Draghi

2018-01-25

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2018-01-25

With a backdrop of concern about US protectionism and a possible abandonment of the 23-year old strong dollar policy, and among the weakest sentiment toward the dollar in at least a decade, the ECB takes center stage. What a turn of events for Mr. Draghi, the President of the European Central Bank.

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FX Daily, January 24: Dollar Takes Another Leg Lower

2018-01-24

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2018-01-24

North American session sold into the dollar's upticks and Asia followed suit, taking the greenback to new multi-year lows against the euro and sterling while pushing it below the JPY110 level for the first time since last September. US trade action has become latest element of the narrative the seeks to explain the dollar's slide and the decoupling of the greenback from interest rates.

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Great Graphic: Is Aussie Cracking?

2018-01-24

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2018-01-24

AUD BGN Currency, Jul 2017 - Jan 2018
The Australian dollar bottomed in early December $0.7500 after having tested $0.8100 a couple of times in September. Since early December, however, the Australian dollar appreciated by nearly 6.5%. As it tested the $0.8000 area, the momentum faded.

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When Trump leaves NAFTA, what happens to CAD

2018-01-24

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Adam Button on BNN Jan 23 talked about NAFTA discussions and the likelihood of Trump invoking the six-month exit clause. What will it mean for the Canadian dollar, and what are some broader themes in global markets. LET’S CONNECT! Facebook โ–บ http://facebook.com/forexlive Twitter โ–บ https://twitter.com/ForexLive Google+ โ–บ https://plus.google.com/+Forexlive Linkedin โ–บ https://ca.linkedin.com/company/forex… Homepage โ–บ...

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FX Daily, January 23: Dollar Stabilizes Near Recent Lows

2018-01-23

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2018-01-23

The US dollar has come back better bid in late Asian activity. The session highlight was the BOJ meeting. BOJ maintained forecasts and policy. There was a small tweak to the inflation assessment, noting that prices were skewed to the downside, and said there was no change in inflation expectations. Last time it has said expectations were weakening. It also reiterated that there was no policy implication to the bond operations.

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FX Daily, January 22: Dollar Remains Heavy

2018-01-22

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2018-01-22

The US dollar closed last week on a firm note, but it has been unable to build on its gains to start the new week. News that Germany's SPD agreed to enter formal negotiations with Merkel's CDU/CSU alliance saw the euro open in Asia around a half a cent higher. However, sellers emerged near $1.2275 but seemed to lose their nerve as the pre-weekend low near $1.2215 was approached.

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Weekly Technical Analysis: 22/01/2018 – USD/JPY, EUR/USD, GBP/USD, USD/CHF

2018-01-22

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2018-01-22

USD/CHF, January 22
The USDCHF pair found solid support at 0.9564 barrier, which forced the price to rebound bullishly to approach testing the key resistance 0.9655, met by the EMA50 to add more strength to it, while stochastic shows clear overbought signals now.

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FX Weekly Preview: ECB and BOJ Meetings Could be Key to Dollar Direction

2018-01-22

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2018-01-22

The US dollar has been marked lower since the middle of last month. It flies in the face strong growth, rising inflation expectations, and greater conviction that the Fed will continue to raise interest rates this year. Moreover, an oft-cited knock on the dollar, the widening current account, may be offset this year by the impact from US corporations repatriating earnings that have been kept offshore.

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FX Daily, January 18: Currencies Consolidate After Chop Fest

2018-01-18

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2018-01-18

The US dollar rallied in the North American afternoon yesterday and the timing coincided with the release of the Fed's Beige Book that saw several districts report wage and price pressures. The US 10-year yield moved toward toward 2.60%, and helped by speculation that as US companies repatriate earnings kept abroad that they may have to liquidate the investments, some of which are thought to be in Treasuries.

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China and US Treasuries

2018-01-18

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2018-01-18

The US Treasury market was consolidating yesterday's 7.5 basis point jump in 10-year yields when Bloomberg's headline hit. The claim was that Chinese officials are "wary of Treasuries". Yields rose quickly to test 2.60% and the dollar moved lower. It is difficult to determine the significance of the claim as the Bloomberg story does not quote anyone.

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What I think about cryptocurrencies

2018-01-17

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Join the ForexLive Telegram channel: https://t.me/joinchat/HveypkdU1-wmyDHb8gddSA Adam Button from ForexLive talks about the future of Bitcoin, cryptocurrencies and a great place where traders can talk about the future of digital assets. If you want to trade crypto, this is the place to learn, get news and share tips.c *back in 2013: http://www.forexlive.com/news/!/what-i-learned-from-the-bitcoin-bulls-nov-18-20131118 LET’S CONNECT! Facebook...

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FX Daily, January 17: Dollar Stabilizes After Marginal New Lows

2018-01-17

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2018-01-17

After a shallow bounce in Asia and Europe yesterday, the dollar slipped lower in North American yesterday. Asia was happy to extend those dollar losses, and the greenback was pushed to marginal new lower in Asia, but has come back in the European session. The next result is a choppy but flattish consolidation compared with last week's closing prices.

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Great Graphic: Treasury Holdings

2018-01-17

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2018-01-17

Treasury Holdings
The combination of a falling dollar and rising US interest rates has sparked a concern never far from the surface about the foreign demand for US Treasuries. Moreover, as the Fed's balance sheet shrinks, investors will have to step up their purchases.

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FX Daily, January 16: Dollar Given a Reprieve

2018-01-16

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2018-01-16

After extending its recent slide yesterday, which the US markets were on holiday, the dollar is firmer against all the major currencies and most of the emerging market currencies. There does not seem to be macroeconomic developments behind the dollar's stabilization, and the gains are quite minor, suggesting a pause in the downtrend rather than a reversal at this juncture.

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Weekly Technical Analysis: 15/01/2018 – USDJPY, EURUSD, GBPUSD, WTI Oil Futures

2018-01-16

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2018-01-16

USD/CHF, January 16
The USDCHF pair succeeded to break 0.9656 level and hold with a daily close below it, which confirms opening the way to extend the bearish wave towards our yesterday's mentioned next target at 0.9566, noticing that the price approaches retesting the broken level now.

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FX Weekly Preview: Drivers and Views

2018-01-15

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2018-01-15

It is not easy to recall another week in which there were so many potential changes to the broad investment climate. The relatively light economic calendar in the week ahead may allow investors to continue to ruminate about some of those developments. Here we provide thumbnail assessments of the main drivers.

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5 Things To Watch for From the Bank of England

2018-01-13

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The Bank of England and the pound will big forex market movers this year. Adam Button from ForexLive visited the BOE to talk about Mark Carney and what to expect in the months ahead. LET’S CONNECT! Facebook โ–บ http://facebook.com/forexlive Twitter โ–บ https://twitter.com/ForexLive Google+ โ–บ https://plus.google.com/+Forexlive Homepage โ–บ http://www.forexlive.com/

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