Tag Archive: $CNY

FX Daily, August 06: Sterling’s Drop Paces Dollar Gains

2018-08-06

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2018-08-06

The US dollar edged higher against most of the major currencies, and emerging market currencies are heavier. Sterling's quarter percent drop makes it the weakest of the majors in slow turnover and it was sufficient to record a new 11-month low.

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FX Weekly Preview: Dog Days of August Begin

2018-08-06

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2018-08-06

With most of the major central bank meetings and important economic data out of the way, the dog days of August are upon us. In terms of drivers, it means that players will have to look elsewhere for inspiration and it means that market liquidy is likely not at its best.

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FX Daily, August 02: BOJ Surprises, BOE on Tap, Trade Worries Weigh on Stocks

2018-08-02

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2018-08-02

The Bank of England meeting concludes a run of major central bank meetings over the past fortnight. The BOE is widely expected to join the Bank of Canada in raising rates. The Federal Reserve and the ECB were content to do and say nothing new.

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FX Daily, July 31: BOJ Prepares for QE Infinity

2018-07-31

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2018-07-31

The Japanese yen has been sold following the adjustments to policy and outlook by the BOJ that will allow the unconventional policies continue for an "extended period of time." Cross rate pressure and month-end demand have lifted the euro and sterling through yesterday's highs.

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FX Daily, July 30: Equities, Bonds, and the Dollar Start Week Softer

2018-07-30

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2018-07-30

The week's big events lie ahead. It is seen as the last important week before the dog days of summer when many participants will take holidays. The BOJ's two-day meeting concludes tomorrow. Speculation that the BOJ is looking for ways to tweak its program continues to spur a small taper-lite tantrum in Tokyo.

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FX Daily, July 24: China Turns To Domestic Stimulus, Weighs on Yuan but Lifts Stocks

2018-07-24

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2018-07-24

Following a record injection via the medium-term lending facility yesterday, China's officials unveiled a set of policies designed to support the weakening economy that soon could face a substantial drag from US tariffs. The effort focuses on boosting domestic demand. Measures include targetted tax cuts and accelerating new infrastructure.

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FX Daily, July 23: Dollar Consolidates Trump-Inspired Losses, BOJ Resolve Tested

2018-07-23

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2018-07-23

US Treasury Secretary Mnuchin told G20 finance ministers and central bankers that President Trump was not trying to interfere in the foreign exchange market or encroach upon the Federal Reserve's independence. Trump's comments and tweets last Thursday and Friday effectively capped the dollar as it was looking to break out to the upside.

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FX Weekly Preview: It was Supposed to be a Quiet Week

2018-07-23

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2018-07-23

It was supposed to be a quiet week. The economic data and event calendar was light. There were three features, and none would likely disrupt the markets much. The first two are in Europe. The eurozone flash PMI for July, the first insight into how Q3 has begun. The PMI is expected to paint a mostly steady economic activity.

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FX Daily, July 20: Dollar Consolidates after Trump Wades In

2018-07-20

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2018-07-20

The US dollar is little changed but mostly softer as the week draws to a close. The market is digesting the implications of yesterday's comments by President Trump about interest rates and foreign exchange, and without fresh economic data, are content to go into the weekend. Since Trump's comments yesterday, the euro has not been below $1.1625 nor above $1.1680.

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FX Daily, July 16: Dollar Softens a Little as Market Awaits Developments

2018-07-16

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2018-07-16

The US dollar is slightly softer against most of the major currencies but is in narrow ranges ahead of today's key events, which include US retail sales and the debate in the UK parliament over Brexit.  The yen is the main exception.  The local markets are closed for a public holiday, and the yen did initially strengthen (the dollar eased to ~JPY112.10) but surrendered those gains and consolidating its biggest loss last week in 10 months.

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FX Daily, July 13: Trump Trips Sterling, but Greenback Enjoys Broad Gains

2018-07-13

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2018-07-13

President Trump weighed in on Brexit and spurred the largest drop in sterling in more than two weeks.  Trump encouraged Brexit, but he indicated he "would have done it much differently" and that he "actually told Theresa May how to do it, but she did not listen."  Trump cautioned that May's plan would mean it would still be too close to the EU and this would "kill" a free-trade deal with the US.  In effect, Trump backed the harder Brexit camp...

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FX Daily, July 12: Dollar Remains Firm as Risk Returns

2018-07-12

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2018-07-12

The US dollar rallied yesterday as the escalating trade tensions between the world's top two economies choked off the animal spirits and a marked down in equities and risk assets.  It remains firm today even as risk has come back.  Equities are mostly higher today and bonds lower.  Emerging market currencies, from Turkey to South Africa are firmer, as is the Chinese yuan. 

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FX Daily, July 09: Possibility of a Soft Brexit Excites Sterling (too Early?)

2018-07-09

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2018-07-09

After a little wobble, sterling has responded favorably to the resignation of the UK Brexit team led by David Davis. The idea is that a path to a softer Brexit is good for sterling.  In fairness, it is a bit early to reach this conclusion, and the softer dollar tone puts wind in sterling's sale. There is a GBP244 mln sterling option at $1.3375 that expires today. The June highs were set in the $1.3450-$1.3470 area.  

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FX Weekly Preview: Macro Considerations for the Capital Markets

2018-07-09

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2018-07-09

The triumphalism that followed the fall of the Berlin Wall nearly three decades ago has evaporated.  The Great Financial Crisis and inexorable widening of income and wealth inequalities within countries undermined claims of moral and economic superiority.  Liberal democracies are fighting a rearguard action and the rise of illiberal regimes. 

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FX Daily, July 05: Dollar is Mixed on Eve of US Jobs and Tariffs

2018-07-05

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2018-07-05

The US dollar is softer against most of the major currencies and mixed against the emerging market currencies.  European currencies firmer, with the continued recovery of the Swedish krona on the back of a more hawkish central bank, and the euro poking through $1.17 for the first time in over a week with the help of strong factory orders report from Germany.  Central and East European currencies are leading among emerging markets.  Asian equities...

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FX Daily, July 03: Markets Trying to Stabilize

2018-07-03

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2018-07-03

The global capital markets are trying to stabilize. US equities recovered from early losses yesterday but this was not enough to stop Asian equities from extending recent losses. The MSCI Asia Pacific Index slipped 0.2% for the sixth decline in the past seven sessions, However, several local markets, including China, Australia, and Korea advanced.

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FX Daily, July 02: Third Quarter Begins With a Thump

2018-07-02

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2018-07-02

The window dressing ahead of the end of Q2 failed to signal a turn in sentiment. Equity markets have taken back those gains and more. The US dollar is broadly firmer, though it was coming off its best levels near midday in Europe, and the three-basis-point slippage puts the US 10-year yield at 2.83%, its lowest in more than a month.

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FX Daily, June 28: US Dollar Remains Firm, Sends Yuan, Rupee, Sterling and Kiwi to New 2018 Lows

2018-06-28

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2018-06-28

The US dollar is consolidating its gains against most of the major currencies, but the underlying strength remains evident. Several major and emerging market currencies are at new lows for the year, including sterling and the New Zealand dollar, but also the yuan, rupee, and the rupiah.

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FX Daily, June 27: Renminbi Slide Continues and Oil Extends Surge

2018-06-27

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2018-06-27

The US dollar is mostly firmer today, though has slipped back below the JPY110 level, as lower yields and equities support the Japanese yen. The main story in the foreign exchange market today is the continued slide in the Chinese renminbi. The decline is the sharpest since the 2015 devaluation.

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FX Daily, June 20: Fragile Stability

2018-06-20

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2018-06-20

The day began out with equity losses in Asia before a sharp recovery, perhaps initiated in China. The MSCI Asia Pacific Index was up a little more than 0.5%. The Shanghai Composite fell more than 1% before closing 0.25% better.

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