Tag Archive: Currency Movement

FX Daily, June 03: Don’t Believe Sino-American Thaw or Fed’s Corporate Bond Divestment is a Policy Signal

2021-06-03

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2021-06-03

Market participants appear to be biding their time ahead of tomorrow's US jobs report as they digest recent developments. The dollar is firmer, equities are mixed, and benchmark bond yields are a little firmer. China and Hong Kong shares continue their recent underperformance, while most of the large markets in the Asia Pacific region edged higher.

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FX Daily, June 02: The Dollar Snaps Back

2021-06-02

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2021-06-02

The US dollar is enjoying broad, even if not large, gains today following yesterday's recovery from three-year lows against sterling and four-year lows against the Canadian dollar. The greenback is firmer against all the major currencies.

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FX Daily, June 01: CNY Softens after PBOC’s Move; Equities Advance on Stronger World Outlook

2021-06-01

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2021-06-01

The US dollar fell against most major currencies following the PBOC's modest move to reduce the upward pressure on the yuan. Follow-through selling was seen earlier today, and sterling reached a new three-year high. However, the dollar found a bid in the European morning, while the Scandi currencies held on to most of their earlier gains.

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FX Daily, May 31: China Raises Reserve Requirement for FX, Stemming the Yuan’s Rise

2021-05-31

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2021-05-31

US and UK markets are closed for holidays today, contributing to the rather subdued price action today. The MSCI Asia Pacific Index rallied two percent last week, the most in three months, and most markets began off the week with modest gains. Japan, Australia, and Singapore, for notable exceptions.

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FX Daily, May 28: The Yuan Extends Gains, While Sterling’s First Close above $1.42 in Three Years Goes for Nought

2021-05-28

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2021-05-28

The recovery of the US 10-year yield, so it is flat on the week near 1.61% coupled with month-end demand, is helping the US dollar firm. While the yen is bearing the burden on the week, with a 0.8% loss, the Antipodeans are leading the downside on the day.

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FX Daily, May 27: Narrow Ranges in FX Prevail Amid Month-End Considerations

2021-05-27

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2021-05-27

Dollar demand linked to the month-end gave the greenback a bit of a reprieve, helped by firmer bond yields. Some momentum players may have been forced out of the euro and yen when the $1.22 and JPY109 levels yielded. However, follow-through dollar buying has been limited, and it has come back a little softer but broadly so.

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FX Daily, May 26: RBNZ Joins the Queue, while Yuan’s Advance Continues

2021-05-26

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2021-05-26

The decline in US rates and the doves at the ECB pushing back against the need to reduce bond purchases next month have seen European bond yields unwind most of this month's gain. The inability of US shares to hold on to early gains yesterday did not deter the Asia Pacific and European equities from trading higher.

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FX Daily, May 25: Softer Yields Weigh on the Greenback

2021-05-25

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2021-05-25

The decline in US 10-year rates to two-week lows below 1.59% is helping rebuild bullish enthusiasm for stocks and weighing on the US dollar. The NASDAQ reached two-week highs yesterday, and almost all the large markets in the Asia Pacific region rose, though India struggled.

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FX Daily, May 24: China Action on Commodities and Crypto Featured

2021-05-24

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2021-05-24

The US dollar is firmer in the European morning after starting out with a softer bias in Asia Pacific turnover. The dollar-bloc currencies, sterling, and the Swiss franc are heavy, but ranges are narrow, and consolidation seems to be the flavor of the day.

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FX Daily, May 20: Market Stabilize after Yesterday’s Tumultuous Session

2021-05-20

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2021-05-20

US equity indices finished lower, but the real story was their recovery. Asia Pacific equities were mixed, with Australia's 1.5% rally leading the recovery in some markets, including Tokyo and Singapore. Europe's Dow Jones Stoxx 600 is up a little more than 0.5% near mid-session, led by information technology and industrials, while energy and financials lagged with small gains.

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FX Daily, May 19: Now What Does Bitcoin say About the Dollar and the US?

2021-05-19

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2021-05-19

A setback in commodities and technology are roiling equity markets today. The inability of US equities to sustain yesterday's rally provided an initial headwind to trading in the Asia Pacific region today. Hong Kong and South Korea markets were closed for holidays, but most of the bourses fell, led by Australia, where the market tumbled nearly 2%, the most in almost three months as the drop in mining and energy took a toll.

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FX Daily, May 18: Risk Appetites Return Bigly

2021-05-18

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2021-05-18

In Asia, equities markets rallied strongly, led by the more than 5% gain in Taiwan, the most in over a year as Monday's 3% drop was more than overcome. The Nikkei gained more than 2% despite the deeper than expected contraction in Q1 GDP. Hong Kong, South Korea, and India also rose more than a 1% gain as tech came roaring back.

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FX Daily, May 14: Softer Yields = Softer Dollar

2021-05-14

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2021-05-14

The surge in consumer prices reported on Wednesday saw rates jump and the dollar push higher. Stronger than expected producer prices yesterday, and news of wage increases (average 10%) at Mcdonalds and for 75,000 people Amazon wants to hire, saw rates ease and the dollar's upside momentum stall.

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FX Daily, May 12: The Dollar Stabilizes but Stocks, Not So Much

2021-05-12

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2021-05-12

The markets remain on edge. Asia Pacific and US equities have yet to find stable footing, and inflation fears are elevated. The foreign exchange market has turned quiet as the dollar consolidates its recent losses.

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FX Daily, May 10: The Dollar Remains on the Defensive

2021-05-10

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2021-05-10

Last week's cyberattack on the largest US gasoline pipeline continues to lift oil and gasoline prices. The June gasoline futures gapped higher to extend last week's 2.4% gain but has subsequently moved lower to enter the gap. 

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FX Daily, April 26: Big Week Begins Quietly, with the Greenback Still Under Pressure

2021-04-26

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2021-04-26

Overview: What promises to be a notable week has begun off quietly: the US, EMU, and South Korea report Q1 GDP.   The eurozone also provides its first estimate of April inflation.  Corporate earnings feature tech and financial firms.  Equities are mostly firmer in the Asia Pacific region and Europe.

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FX Daily, April 12: Capital Markets Look for Direction

2021-04-12

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2021-04-12

Overview: Risk appetites have not returned from the weekend.  Equities are heavy, and bond yields softer.  The dollar is drifting lower in Europe.  China's unusually candid admission of the shortcomings of its vaccine and record new cases in India saw all the equity markets in the region fall.  Only South Korea and Taiwan escaped the carnage that saw the Indian market tumble 3.5%. 

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FX Daily, April 8: Calm Capital Markets See the Dollar Drift

2021-04-08

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2021-04-08

Overview:  Global stocks are moving higher today.  Fears of a new lockdown in Tokyo amid rising covid cases weighed on Japanese stocks, a notable exception as the MSCI Asia Pacific Index rose for its fifth session of the past six.  Europe's Dow Jones Stoxx 600 is edging to new record highs today and is advancing for its fifth session of the past seven. 

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FX Daily, April 5: Market Pushes First Rate Hike into 2022

2021-04-05

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2021-04-05

Overview: Many financial centers in Asia and Europe remain closed for the extended holiday. Although several markets that were open were higher in the Asia Pacific region, India was an exception as a record contagion sent stocks down the most in five weeks. US futures are pointing higher, led by the Dow, while the NASDAQ lags.

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FX Daily, March 30: US Yields Push Higher, Lifting the Greenback Especially Against the Euro and Yen

2021-03-30

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2021-03-30

The US 10-year yield is at new highs since January 2020, pressing above 1.77% and helping pull up global yields today.   European benchmarks yields are up 4-5 bp, and the Antipodean yields jump 8-9 bp.  The impact on equities has been minor, and the talk is still about the unwinding of Archegos Capital. 

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