Tag Archive: Currency Movemeent

FX Daily, May 17: US and Europe may Announce Tariff Truce

2021-05-17

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2021-05-17

There are two general developments as the busy week gets underway. First, despite accelerated price readings in the US (CPI, PPI, import prices, and University of Michigan survey), US rates are soft. The 10-year yield is near 1.61% after rising to 1.70% after the CPI surprise last week.

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FX Daily, April 29: US GDP: The V

2021-04-29

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2021-04-29

Overview:  The market's initial reaction to the Federal Reserve statement and the press conference was that it was dovish: the 10-year yield slipped, and the dollar was sold to new lows.  In fact, the two countries that appear to be ahead of the curve among high-income countries, Canada and Norway, saw their currencies rally to new three-year highs.

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FX Daily, April 28: Biden and Powell are Center Stage

2021-04-28

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2021-04-28

Overview: It appears that the backing up of US yields is giving the dollar a better tone and challenging the Eurosystem, which has stepped up its bond purchases.  The US 10-year yield is around 1.65%, roughly a two-week high and back above the 20-day moving average. 

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FX Daily, April 27: Markets Mark Time Ahead of Fed

2021-04-27

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2021-04-27

Short-covering ahead of the FOMC's outcome tomorrow appears to be lending the US dollar support today. It has extended yesterday's gains against the euro, sterling, and yen.  Among emerging market currencies, the Turkish lira, along with the South Korean won and Taiwanese dollar, lead the few advancers.

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FX Daily, April 23: Greenback Slips into the Weekend

2021-04-23

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2021-04-23

Overview:  Many narratives link the prospect of higher capital gains tax on about a third of 1% of Americans as the catalyst for losses in US equities yesterday (and Bitcoin) and weakness in some global shares today.  Of the large markets in the Asia Pacific region, only Japan, which is reimposing a formal emergency in Tokyo, Osaka, and two other prefectures, fell. 

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FX Daily, April 20: Market has Second Thoughts about Timing of First Fed Hike

2021-04-20

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2021-04-20

Overview:  Even as US yields edge higher, the dollar struggles. With the 10-year Treasury yields now at 1.62%, nine basis points above last week's lows, the greenback has turned mixed against the major currencies. After briefly slipping below JPY108, the dollar has recovered to around JPY108.55. 

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