Tag Archive: Currency Movement

FX Daily, July 28: Dollar Bounces, Gold Slips, while Equities Hold Their Own

2020-07-28

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2020-07-28

The main development in the capital markets today is the firmer dollar against nearly all the major and emerging market currencies.  Among the majors, the New Zealand dollar and Swedish krona are the heaviest (~-0.4%), while the Swiss franc and yen are marginally lower.

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FX Daily, July 24: Strong PMIs Have Limited Impact as Profit-Taking Hits Equities

2020-07-24

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2020-07-24

US stocks stumbled yesterday, and the S&P 500 nearly gave back the week's gains with its roughly 1.25% loss, the largest of the month.  The NASDAQ 100 fell to two-week lows.  Slower cloud growth at Microsoft and a delay in the next generation of chips at Intel were among the drags.

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FX Daily, July 23: Powerful Momentum is Still Evident in the Foreign Exchange Market

2020-07-23

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2020-07-23

The powerful momentum moves in the capital markets continues unabated by escalating US-China tensions and continued spread of the virus. Asia Pacific equities were mixed. Tokyo was closed for a holiday, but several other large markets in the region, like China, South Korea, and Taiwan markets slipped lower, while Hong Kong, Australia, and India advanced.

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FX Daily, July 22: Pang of Uncertainty Spurs Profit-Taking

2020-07-22

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2020-07-22

The optimism among investors appears to have evaporated in the face of new US-Chinese tensions, possible delays in the next US fiscal stimulus, and new record virus infections in Australia and Hong Kong. US stocks had pared early gains yesterday, and the high-flying NASDAQ finished lower after setting new record highs. 

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FX Daily, July 21: Europe and Tech Lift Risk Appetites

2020-07-21

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2020-07-21

Overview: The continued domination of the tech sector and Europe's tentative agreement are lifting equities and risk assets more generally today.  Australia and Hong Kong's 2.3%-2.5% rally led Asia Pacific markets.  The Dow Jones Stoxx 600 is higher for a third session and above its 200-day moving average for the first time since February. 

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FX Daily, July 20: Markets Yawn, Deal or No Deal

2020-07-20

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2020-07-20

Overview: While there are signs that Europe has reached a compromise on the grant/loan issue, the spillover into the markets is quite limited. China, with Shanghai's 3.1% gain, led a few markets in the Asia Pacific region higher, including Japan and India. Most markets were lower, and Europe's Dow Jones Stoxx 600 is a fractionally firmer, recovering from initial losses.

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FX Daily, July 17: Markets Limp into the Weekend

2020-07-17

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2020-07-17

Chinese stocks stabilized after yesterday's sharp fall and most Asia Pacific equity markets, but Tokyo rose today.  European shares are little changed, but the Dow Jones Stoxx 600 is still poised to hold on to modest gains for the third consecutive week. 

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FX Daily, July 16: Equities Slide and the Greenback Bounces After China’s GDP and Before the ECB

2020-07-16

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2020-07-16

Overview:  Profit-taking, perhaps spurred by disappointing retail sales figures, sent Chinese equity markets down by 4.5%-5.2% today, the most since early February.  It appears to be triggering a broader setback in equities today.  The Hang Seng fell 2%, and most other markets in the region were off less than 1%. 

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FX Daily, July 14: Turn Around Tuesday Began Yesterday

2020-07-14

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2020-07-14

Overview: Turn around Tuesday began yesterday with a key reversal in the high-flying NASDAQ. It soared to new record highs before selling off and settling below the previous low. The S&P 500 saw new four-month highs and then sold-off and ended on its lows with a loss of nearly 1% on the session. Asia Pacific shares fell, led by declines in Hong Kong and India.

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FX Daily, July 13: Risk Appetites Firm, but the Greenback is Mixed

2020-07-13

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2020-07-13

Equities began the week on a firm note in the Asia Pacific region.  The Nikkei gained more than 2%, and the profit-taking seen in China ahead of the weekend was a one-day phenomenon.  The Shanghai Composite rose 1.8%, and the Shenzhen Composite surged 3.5%.  Taiwan and South Korea markets also rallied more than 1%.

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FX Daily, July 10: Surge in Coronavirus Spooks Investors as China Takes Profits

2020-07-10

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2020-07-10

Record fatalities in a few US states, coupled with new travel restrictions in Italy and Australia, have given markets a pause ahead of the weekend. News that two state-backed funds in China took profits snapped the eight-day advance in Shanghai at the same time as there is an attempt to rein in the use of margin.

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FX Daily, July 9: The Dollar is Sold through CNY7.0 as Chinese Equities Continue to Rally

2020-07-09

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2020-07-09

Investors continue to clamor into risk assets.  Led by Chinese shares, the MSCI Asia Pacific Index pushed higher for the third session this week to new five-month highs.  Europe's Dow Jones Stoxx 600 is trying to snap a two-day decline with the help of better than expected revenues for its largest tech company.

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FX Daily, July 07: Fade the Dollar Gains

2020-07-07

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2020-07-07

The S&P 500 rallied 1.6% yesterday to extend the streak to a fifth consecutive session, and the longest of the year and completed the negation of a bearish technical pattern.  However, the main feature today is a wave of profit-taking on risk assets.  Most equity markets moved lower in the Asia Pacific region. Chinese markets were a notable exception.

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FX Daily, July 6: New Record Number of Covid Cases Doesn’t Curtail Appetite for Risk

2020-07-06

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2020-07-06

Overview: A new daily high number of contagions globally has been reported, but the risk-appetites have been stoked.  Chinese stocks have been on a tear.  The Shanghai Composite rallied 5.7% today to bring the five-day advance to 13.6%.  Most other regional markets, including Hong Kong, rallied as well (3.8%).  Australia was the main exception, and it pulled back by 0.7%.  It is still up a solid 3.4% over the past five sessions.

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FX Daily, July 2: Dollar Thumped Ahead of US Jobs Report

2020-07-02

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2020-07-02

Market optimism over the possibility of a vaccine in early 2021 overshadowed the continued surge in US cases, where the 50k-a-day threshold of new cases has been breached.  Following the NASDAQ close yesterday at record highs, global equities have advanced.  Led by Hong Kong returning from yesterday's holiday, Asia Pacific equities rallied.  Most local markets rose by more than 1%, though Tokyo and Taiwan lagged.

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FX Daily, July 1: Second Verse Can’t be Worse than the First, Can it?

2020-07-01

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2020-07-01

The resurgence of the contagion in the US has stopped or reversed an estimated 40% of the re-openings, but the appetite for risk has begun the second half on a firm note, helped by manufacturing PMIs that were above preliminary estimates or better than expected.  Except for Tokyo and Seoul, equities in the Asia Pacific region rose.  The MSCI Asia Pacific Index rose almost 15.5% in Q2. 

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FX Daily, June 26: Investors Wrestle with Notion that More Covid Cases mean More Stimulus

2020-06-26

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2020-06-26

It may be that a new surge in virus cases will elicit more policy support from officials, but the immediate focus may be on the economic disruption. The number of US cases is reaching records, and at least a couple of states are stopping their re-opening efforts. Several other countries, including parts of Australia, Japan, and Germany, are wrestling with the same thing, And some emerging markets, like Brazil and Mexico, have not experienced a lull.

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FX Daily, June 25: Contagion Growth and Calendar-Effect Saps Investor Enthusiasm

2020-06-25

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2020-06-25

Given the huge run-up in risk assets this quarter, and the technical indicators warning of corrective forces, concerns over the new infections is pushing on an open door. The S&P 500 gapped lower yesterday and fell 2.6%, led by energy and airlines. The NASDAQ snapped an eight-day rally. Follow-through selling in the Asia Pacific region saw most markets fall at least 1%, with Korea and Australia seeing losses in excess of 2%.

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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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