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Tag Archive: Currency Movement

FX Daily, May 15: Much Talk but Little Action

2020-05-15

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2020-05-15

Overview: The S&P 500 staged an impressive recovery yesterday, a sell-off that took it to its lowest level since April 21, to close more than 1% higher on the day, helped set the tone in the Far East and Europe today. Gains in most Asia Pacific markets, but Hong Kong, Shanghai, and India, trimmed this week's losses. Australia's 1.4% rally today managed to turn ASX positive for the week, extending leg up for a third consecutive week.

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FX Daily, May 11: Quiet Start to New Week

2020-05-11

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2020-05-11

Overview: The new week begins slowly in the capital markets. Many markets in the Asia Pacific region, including Japan, Hong Kong, and Australia, gained over 1%, but European and US shares are heavier. Benchmarks off all three regions rallied by 3.4%-3.5% over the past two weeks. Bond markets are also little changed, with the US 10-year benchmark just below 70 bp ahead of this week's record refunding.

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FX Daily, May 8: Jobs and Negative Fed Funds Futures

2020-05-08

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2020-05-08

Overview: The S&P 500 closed near its session lows for the third day running yesterday but failed to deter the bulls in Asia-Pacific, where most markets rose by more than 1%.  Taiwan, Korea, and Australia lagged a bit though closed higher. Europe's Dow Jones Stoxx 600 is firm, and the modest gains (~0.5%) would be enough to ensure a higher weekly close if it can be maintained. 

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FX Daily, May 7: China Reports an Unexpected Jump in Exports, While Norway Surprises with a Rate Cut

2020-05-07

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2020-05-07

Overview: There is a sense of indecision in the air today.  There have been several developments, but investors seem mostly reluctant to extend positions. China reported a surge in exports in April and an increase in the value of reserves.  Australia reported a rise in exports in March.  The Bank of England left policy steady, but clearly signaled it was prepared to boost its asset purchases. 

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FX Daily, May 6: The Euro is Knocked Back Further

2020-05-06

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2020-05-06

Overview:  The late sell-off in US stocks yesterday has not prevented gains in Asia and Europe.   Most of the equity markets, including the re-opening of China, gain more than 1%.  Australia was a notable exception, falling about 0.4%, and Taiwan was virtually flat.  European bourses opened higher but made little headway before some profit-taking set in, while US shares are trading higher. 

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FX Daily, May 5: German Court Adds to the Euro’s Woes

2020-05-05

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2020-05-05

Overview: The S&P 500 recovered yesterday after dipping trading below the 20-day moving average for the first time in a month.  The key area is the gap between the April 30 low (~2892.5) and the May 1 high (~2869). Oil reversed higher as well. June crude was off nearly 9% in the US morning and closed 7% higher on the day and above $21 for the first time since April 21, the day of negative oil prices.

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FX Daily, May 4: Monday Blues

2020-05-04

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2020-05-04

Overview:  The constructive mood among investors in April has given way to new concerns as May gets underway.  Japan and China are still on holiday, but most of the other markets in Asia fell, led by 4.5%-5.5% declines in Hong Kong and India, and more than 2% in most other local markets.  Australia bucked the trend a gained 1.4% after shedding 5% before the weekend. 

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FX Daily, April 29: Heavy Dollar amid Month-End Pressure

2020-04-29

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2020-04-29

Overview: The dollar is lower across the board as dealers attribute the selling to month-end pressures ahead of the FOMC today and ECB tomorrow and long-holiday weekend for many. Japan's Golden Week holiday has already begun. Despite the loss in US equities yesterday, despite the higher opening, it has not spilled over, as Alphabet earnings helped lift sentiment.

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FX Daily, April 28: Oil’s Slides before Steadying, while Easing of Lockdowns Support Risk-Taking

2020-04-28

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2020-04-28

Overview: Equities are building on yesterday's gains.  The MSCI Asia Pacific Index rose 2% yesterday and edged higher today. Shanghai and Austalia stand out as exceptions.   In Europe, the Dow Jones Stoxx 600 is extending yesterday's 1.8% gain to reach its best level since March 11. Today would be the fourth advance in the past five sessions. US shares are firmer.

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FX Daily, April 27: Equities Rally and the Dollar Eases to Start the Week

2020-04-27

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2020-04-27

Overview: Global equities are beginning the new week on an upbeat note.  All the markets in the Asia Pacific region rallied, led by more than 2% gains in the Nikkei and Taiwan.  European bourses are higher.  All the industry groups are participating and financials and consumer discretionary leading the way. 

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FX Daily, April 24: Markets Limp into the Weekend

2020-04-24

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2020-04-24

Overview:  The reversal in US equities yesterday set the stage for today's losses.  All the Asia Pacific bourses fell today but Australia.  For the week, the regional index is off more than 2%.  Europe's Dow Jones Stoxx 600 was flat for the week coming into today's sessions.  It is off around 0.5% in late morning activity. 

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FX Daily, April 23: Investors Take PMI Crash in Stride

2020-04-23

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2020-04-23

Overview: Investors have remained fairly calm in the face of flash April PMI crashes and an increase of virus cases in several European countries. Most equity markets in the Asia Pacific region rose, with the notable exceptions of China and Australia.  The Nikkei rose for the first time this week, and its 1.5% gain led the region.

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FX Daily, April 22: Investors Catch Collective Breath, but Sentiment remains Fragile

2020-04-22

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2020-04-22

Overview:  Risk-appetites appear to have stabilized for the moment. Most equity markets are higher. Japan and Malaysia were exceptions, but the MSCI Asia Pacific Index rose for the first time this week. In Europe, the Dow Jones Stoxx 600 is recouping about a third of yesterday's loss.

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FX Daily, April 21: Oil Drilled Below Zero, Equity Rally Stalls, Greenback Advances

2020-04-21

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2020-04-21

Overview:  Oil's wild ride has been joined by two other developments that are keeping investors off-balance. First, reports suggest that North Korea's Kim Jong-Un maybe in critical condition after surgery. He apparently was absent from last week's events celebrating his grandfather.

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FX Daily, April 16: Markets Brace for another Jump in US Weekly Jobless Claims

2020-04-16

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2020-04-16

Overview:  Equity losses in the US appeared to drag most Asia Pacific markets lower today, with China and India the notable exceptions.  European bourses are higher, and the only energy sector is a drag on the Dow Jones Stoxx 600,  which is around 1% higher in late morning turnover, while US shares are also trading firmer.  Asia Pacific 10-year benchmark yields eased. 

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FX Daily, April 15: Dollar Rises as Equities Slump

2020-04-15

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2020-04-15

Overview:  The recovery in equities stalled, and the risk-off mood has helped lift the US dollar, which had been trending lower. Taiwan and Malaysia were notable exceptions in the Asia Pacific regions to the heavier equity tone. The Nikkei gave back almost 0.5% after surging more than 3% on Tuesday. Europe's Dow Jones Stoxx 600 is ending a five-day rally. 

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FX Daily, April 14: Equities are Firm but New Developments Needed or Risk Appetites may Become Satiated

2020-04-14

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2020-04-14

Overview: Risk appetites have returned today after taking yesterday off. The MSCI Asia Pacific Index advanced every day last week, slipped yesterday, and jumped back today. Most of the national benchmark advanced at least 1.5%, and the Nikkei led the way with a 3% rally to reach its best level since mid-March.

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FX Daily, April 03: Oil Firm, Greenback Extends Gains

2020-04-03

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2020-04-03

Overview:  Global equities are finishing the week on a soggy tone despite the 2%+ gains seen in the US yesterday. The extension of shutdowns, rising contagion and fatality rate, and imploding economies weigh on prices. In Asia, Korea and Indonesia bucked the trend to most minor gains.  Europe is giving back yesterday's gains, and the Dow Jones Stoxx 600 is nearly flat on the week.

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April Monthly

2020-04-03

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2020-04-03

In March,  the G10 and many emerging market countries, governments, and central banks unveiled large emergency measures.  The motivation is to blunt the economic impact of the novel coronavirus that has seen more than two billion people around the world have their movement restricted. Large swathes of the world's economy have shut down. 

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FX Daily, April 2: Optimism on Oil Deal Steadies Risk Appetites…for the Moment

2020-04-02

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2020-04-02

Overview: After US stocks dropped more than 4% yesterday, investor sentiment has improved, apparently sparked by ideas that the pain will force oil producers to find a way to reduce supply. Oil prices have surged, with the May WTI contract rallying around 7%. Asia Pacific equities were mostly higher, with Japan and Australia the notable exceptions.

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