Tag Archive: Currency Movement

Dollar Losses Extended, while Stocks and Bonds Retreat

2025-12-01

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2025-12-01

Overview: The US dollar is trading with a heavier bias today. Equities and bonds have also been sold on the first day of the new month. The dollar bloc and the sterling are laggards today, while the yen has been squeezed higher amid heightened speculation that the Bank of Japan will lift rates later this … Continue reading »

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USD Bounces into the End of the Week

2025-11-28

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2025-11-28

Overview: The US dollar is trading firmer against nearly all the G10 currencies. The yen is the best performer, and it is virtually flat despite the swing toward BOJ hike next month. Expectations have steadied for a Fed cut next month around 80%. The November inflation reports from the largest eurozone members failed to inspire … Continue...

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Reeve’s Budget and US Beige Book Still to Come after Market Swings toward a Fed Cut and PBOC validates Stronger Yuan

2025-11-26

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2025-11-26

Overview: The US dollar is mostly lower today. The pendulum has shifted hard in favor of a rate cut next month and this has taken the wind from the dollar's sails. The New Zealand dollar is leading today's move after the central bank cut rates for perhaps the last time in the cycle. The Australian …

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Trump Speaks with Xi and Takaichi but Chinese-Japanese Tensions Remain High

2025-11-25

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2025-11-25

Overview:   The US dollar is mostly narrowly mixed against the G10 currencies. The Japanese yen is the notable exception. It leads the major currencies with around a 0.35% gain as the dollar slips to a four-day low near JPY156 after peaking last week slightly shy of JPY158. The dollar-bloc currencies join the Swiss franc and …

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Dollar Consolidates to Start the New Week

2025-11-24

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2025-11-24

Overview: The reassessment of the outlook for next month's FOMC meeting, spurred by comments before the weekend by the NY Fed president has been sustained today but the impact on the dollar is not so clear. The greenback is mixed, with the European currencies, for the most part, doing better than the dollar bloc and … Continue...

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Risk-Off Friday

2025-11-21

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2025-11-21

Overview: The sharp fall in global equities after the stunning reversal in the US yesterday is the main development today. The largest markets in the Asia Pacific region fell more than 2% today. Europe's Stoxx 600 is off more than 1%. It is selling off for the sixth session in the past seven. After posting … Continue reading »

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Euro Stabilizes above $1.15, while the Yen Remains Vulnerable

2025-11-20

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2025-11-20

Overview:  The US dollar is little changed against most of the G10 currencies as the North American session is about to get underway. There were some follow-through greenback gains after yesterday's advance but limited. The dollar's rally against the yen continued. It reached almost JPY157.80 before pulling back to around JPY157.10, where it found support …

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The Japanese Yen Continues to Fall

2025-11-19

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2025-11-19

Overview: The US dollar is firmer today. It has reached a new ten-month high against the yen, a little above JPY156 and the euro saw a five-day low near $1.1565. Emerging market currencies are mixed. The PBOC set the dollar's reference rate at a new high for the month. The news stream is light. UK's … Continue reading »

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Equities Wish it were Turn Around Tuesday as Rout Continues and No Relief for the Yen

2025-11-18

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2025-11-18

Overview: A sell-off in equities is continuing while the foreign exchange market is quiet with the greenback confined mostly to narrow ranges. It is firmer against most currencies, though the dollar bloc is the most resilient today. The dollar reached a new nine-month high against the yen. Despite some escalating rhetoric from the MOF, the …

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Downgraded Chances of Fed Cut Next Month Help Underpin the Greenback

2025-11-17

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2025-11-17

Overview: The US dollar is slightly firmer against most of the G10 currencies, with the Antipodeans, leading the move with around 0.25% losses. Rising tensions between Japan and China, coupled with shift in expectations away from a Fed cut and a BOJ hike next month keeps the dollar within strike distance of JPY155, where $1.4 …

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Sterling and Gilts Weighed Down by UK Government Budget Shift

2025-11-14

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2025-11-14

Overview: The US dollar is trading with a firmer bias today but is mostly within yesterday's range. There are four developments to note. First, China's October data mostly disappointed, but the PBOC set the dollar's reference rate at a new low since October 2024. Second, the UK government reportedly has shifted strategies to focus on …

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US Dollar Remains Soft Despite Disappointing UK Growth and Eurozone Industrial Output

2025-11-13

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2025-11-13

Overview: The US dollar is trading heavier against most of the world's currencies today. Better than expected Australian employment data, which boosts speculation that the central bank's easing cycle is over, helps explain the Australian dollar's gain to its best level of the month. However, sterling is firm and extended yesterday's gains despite news that …

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Yen Slumps but Material Intervention Still Seems Unlikely, Sterling Holds $1.31, and PBOC Fix USD at New Low

2025-11-12

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2025-11-12

Overview: The US dollar is mostly consolidating in narrow ranges against the major currencies. The notable exception is the Japanese yen, which has slumped to a new nine-month low as the greenback approached JPY155. Despite repeated warnings by Japan's finance minister, the market seems undaunted. Actual material intervention seems unlikely, especially outside of Tokyo markets. …

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Yen and Sterling Weakness Featured

2025-11-11

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2025-11-11

Overview: The US dollar is mixed.  Sterling is the weakest of the G10 currencies after unexpectedly poor employment reported boosted chances of rate cut next month.  The dollar also made marginal new high against the Japanese yen since February, but so far has remained below JPY154.50.  The dollar-bloc currencies are softer while the Scandis are …

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Deal to Re-Open the US Government Helps Boost Risk Appetites

2025-11-10

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2025-11-10

Overview: The prospect that the longest US government shutdown in history may end in the next few days has bolstered risk appetites, driven equities broadly higher and left the dollar non-plussed. The greenback is mixed against the G10 currencies. The Japanese yen, which appears have been dragged lower by the jump in US rates. The …

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Equities Slide, the Greenback is Bid, while the Yen Recovers with more Verbal Intervention

2025-11-04

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2025-11-04

Business travel will interrupt the commentary for the remainder of the week.  The next update will be the weekly commentary on November 8.  Good luck to us all.   Overview: Tumbling equities and softer yields mark a risk-off session. The US dollar, though, is mostly higher. Among the G10 currencies, it took another round of verbal …

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Greenback is Firm: Government Still Closed

2025-11-03

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2025-11-03

Overview: The US dollar is beginning the new month on a firm note. It has edged higher against most currencies. Among the G10, the Australian dollar and Norwegian krone are leading the pack with negligible gains. Among emerging market currencies, the Mexican peso's gain of around 0.15% puts its atop the complex. The news stream …

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Bullish Dollar Consolidation

2025-10-31

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2025-10-31

Overview: After extending this week's rally yesterday, the US dollar is consolidating yesterday's gains in what appears to be favorable price action. The pullback from greenback's best level has been shallow. The US struck several trade deals this week, and secured a trade truce with China, even if many are skeptical of its longevity, and …

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US-China Agree to Unwind Recent Actions, while Greenback Consolidates Post Fed Move, and Yen Slumps after BOJ Stands Pat

2025-10-30

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2025-10-30

Overview: The US agreed to not to block subsidiaries of Chinese companies that were sanctioned and not to enforce the port fee on Chinese ships that had ostensibly triggered the tightening of China's rare earth/magnet export restrictions. China agreed to suspend those for a year and dropped its levy on US made/operated ships port calls. …

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Japanese Verbal Intervention was More Effective than Bessent’s, and the Dollar is Bid Ahead of FOMC Outcome

2025-10-29

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2025-10-29

Overview:  The market is optimistic a deal will be struck between the US and China tomorrow. A reduction in the fentanyl tariff is expected, and a one-year delay in the broad export licensing requirement for rare earths and related technology has been tipped. Reports suggest China purchased two cargoes of US soy for the first …

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