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Tag Archive: Currency Movement

FX Daily, June 24: Risk Appetites Satiated for the Moment

2020-06-24

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2020-06-24

Overview: The rally in risk assets in North America yesterday is failing to carry over into today's activity. Asia Pacific equities were mixed. Korea and Indonesia led the advances with more than 1% gain. China and Taiwan also gained. Japan and Hong Kong. Europe's Dow Jone's Stoxx 600 is giving back yesterday's gains (~1.3%) plus some and US stocks are heavy.

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FX Daily, June 23: Weebles Wobble but they Don’t Fall Down

2020-06-23

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2020-06-23

Overview: After early indecision, investors ramped the demand for risk assets, encouraged perhaps by indications that the Trump Administration going to support at least another trillion-stimulus package. The NASDAQ rallied to new record highs, and the dollar got thumped across the board. However, in early Asia activity, Trump adviser Navarro seemed to have told Fox News that the US-China trade deal was over. 

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FX Daily, June 17: Correction Phase does not Appear Over

2020-06-17

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2020-06-17

Overview:  Investors have not yet completely shaken off the angst that saw equities slide last week.  All equity markets in the Asia Pacific region, but Japan, edged higher today, including China, India, and South Korea, where political/military tensions are elevated.  Europe followed suit, and the Dow Jones Stoxx 600 is firm near yesterday's highs. It has entered but not yet filled the gap created by the sharply lower opening on June 11.

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FX Daily, June 15: Unwind Continues

2020-06-15

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2020-06-15

Overview: The swing in the pendulum of market sentiment toward fear from greed began last week and has carried over into today's activity.  Global equities are getting mauled.  In the Asia Pacific region, no market was spared as the Nikkei's 3.5% drop, and South Korea's 4.7% fall led the way.  In Europe, the Dow Jones Stoxx  600 is recovering from a more than two percent early loss,  as it drops for the fifth time in the past six sessions.

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FX Daily, June 12: Licking Yesterday’s Wounds Today

2020-06-12

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2020-06-12

Overview:  The nearly three-month rally in risk assets ended with high drama with a stomach-churning almost 6% slide in the S&P 500 yesterday. Follow-through selling was seen in the Asia Pacific region, but most markets recovered from their lows, and although losses were still recorded, the downside momentum seemed broken. The same holds true for Europe. Bourses opened lower but by mid-morning had moved higher (~1.4%) and US shares are trading...

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FX Daily, June 11: Are Risk Appetites Satiated, or Simply Taking the Day Off?

2020-06-11

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2020-06-11

Many observers are attributing the sell-off in risk assets today to the Federal Reserve's pessimistic outlook, yet, as we note below, the Fed's median GDP forecast this year is better than many international agency forecasts, including the OECD's that was issued yesterday.  Moreover, some near-term trends were already in place.

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FX Daily, June 10: Corrective Forces Still Seem in Control Ahead of the FOMC Outcome

2020-06-10

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2020-06-10

The pullback ins US shares yesterday has not derailed the global advance. Japanese and Chinese markets were mixed, the Hang Seng slipped, and Indonesia was hit with profit-taking, but the MSCI Asia Pacific Index eked out a small gain. It has fallen once past two and a half weeks. The Dow Jones Stoxx 600 opened higher but is falling for the third consecutive session.

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FX Daily, June 9: Profit-Taking Gives Turn Around Tuesday Its Name

2020-06-09

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2020-06-09

Overview: The S&P 500 turning higher on the year was the last straw before an arguably overdue bout of profit-taking kicked-in and is the dominant feature today in the capital markets.  It began slowly in the Asia Pacific region. Equities were mixed, and Australia's 2.4% rally and the 1.6% gain in Hong Kong stood out.  Europe's Dow Jones Stoxx 600 was off for a second day (~1.3%), and US stocks are trading heavily, warning that the S&P 500 may give...

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FX Daily, June 5: Greenback Remains Soft Ahead of Employment Report, but Reversal Possible

2020-06-05

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2020-06-05

The modest loss in the S&P 500 and NASDAQ yesterday did not signal the end of the bull run. All the markets in the Asia Pacific region rallied, with the Hang Seng among the strongest with a 1.6% advance that brought the week's gain to around 7.8%. South Korea's Kospi was not far behind with a weekly gain of 7.5%.  In the past two weeks, the MSCI Asia Pacific Index is up nearly 10%. 

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FX Daily, June 3: Dollar is Sold and ROW is bought

2020-06-03

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2020-06-03

Overview: Two recent trends continue.  Equities are moving higher, and the dollar remains heavy.  Equity markets in the Asia Pacific region rose at least one percent, and South Korea, Singapore, and Malaysia rallied 2-3%.  Europe's Dow Jones Stoxx 600 is up more than 1% for the third consecutive session.  US shares are trading higher and are poised to extend their recent run.

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FX Daily, June 2: Greenback’s Slide Continues

2020-06-02

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2020-06-02

Overview: Liquidity trumps everything else.  US equities shrugged off the national guard being called into action in nearly a third of US states, and the S&P 500 closed yesterday at nearly three-month highs. Asia Pacific markets followed suit.  Most markets in the region rose by more than 1%. The notable exceptions were Australia and China, where benchmarks rose by 0.2%-0.3%. The Dow Jones Stoxx 600 is up more than 1% in the European morning.

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FX Daily, June 1: US Dollar Losses are Extended, but Momentum Stalls in the European Morning

2020-06-01

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2020-06-01

Overview: US stocks extended their gains ahead of the weekend after President Trump shied away from specific actions against China-Hong Kong, and today Hong Kong shares recovered smartly from last week's 3.6% slide. The Hang Seng rose 3.3% today, and the Shanghai Composite gained over 2%. All the markets in the region advanced. Europea's Dow Jones Stoxx 600 was up about 0.5% in late morning turnover, which would be the fifth gain in six sessions. ...

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FX Daily, May 29: Month-End Profit-Taking Weighs on Equities as the Euro Pops Above $1.11

2020-05-29

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2020-05-29

Overview:  The announcement that President Trump will hold a press conference on China later today rattled investors yesterday after they had earlier shrugged off the escalation of tension between the US and China to take the S&P 500 up to its highest level in nearly three months.  The S&P 500 reversed and settled on its lows, and this carried over into today's activity, which also may be reflecting month-end adjustments.

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FX Daily, May 28: Escalating Tensions, Calm Markets

2020-05-28

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2020-05-28

Overview: The US Secretary of State's announcement that the autonomy of Hong Kong could no longer be affirmed did not derail the rally in US equities. However, the threat of an executive order against social media companies may be discouraging follow-through buying, leaving US equities little changed ahead of the open. In contrast, Asia Pacific and European equities are mostly higher.

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FX Daily, May 26: Fear is Still on Holiday

2020-05-26

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2020-05-26

Overview: The heightened tensions between the US and China sapped risk-appetites before the weekend, but appear to be missing in action today.  Equity markets have rebounded strongly. Nearly all the equity markets in the Asia Pacific region rose (India was a laggard) led by an almost 3% rally in Australia, which was seen as particularly vulnerable to the Sino-American fissure. 

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FX Daily, May 22: US-China Escalation Sinks Hong Kong and Hits Risk Appetites

2020-05-22

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2020-05-22

Overview: The US has ratcheted up pressure on China on several fronts and has sapped risk appetites ahead of the weekend.  Equity markets are lower across the world.  Even in India, where the central bank unexpectedly cut the repo rate 40 bp, shares fell 0.7%.  It was Hong Kong's 5.5% that led the region lower.  Europe's Dow Jones Stoxx 600 is off around 1% in late morning turnover to pare this week's gain to about 2.5%. 

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FX Daily, May 19: Optimism Burns Eternal

2020-05-19

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2020-05-19

Overview: Hopes for a vaccine and a German-French proposal to break the logjam at the EU for a joint recovery effort helped propel equities higher yesterday. There was strong follow-through in the Asia Pacific region, where most markets advanced by more than 1% today. However,  the bloom came off the rose, so to speak, in Europe. After a higher opening, markets reversed lower, and the Dow Jones Stoxx 600 is off about 0.75% in late morning turnover.

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FX Daily, May 18: Yuan Slumps as US-Chinese Tensions Rise

2020-05-18

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2020-05-18

Overview: Despite somber warnings that the US economic recovery can stretch to the end of next year, investors have begun the new week by taking on new risks. Most equity markets in the Asia Pacific region rose, with Australia leading the large bourses with a 1% gain. India was an outlier, suffering a 2.4% loss, and Taiwan's semiconductor sector was hit, and the Taiex fell 0.6%.

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