Tag Archive: Daily News

Dollar Softens as Risk-Off Sentiment Ebbs

The dollar continues to soften as risk-off sentiment ebbs; the first presidential debate will take place tonight. House Democrats have staked out their latest position at $2.2 trln; there is a fair amount of US data out today; Brazil has come under renewed pressure from fiscal concerns.

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Dollar Soft as Markets Ignore Virus Numbers and Switch to Risk-On Mode

Virus numbers are rising across Europe and the US; the dollar is softening as risk-off sentiment ebbs. It is a fairly quiet day in the US; there is a glimmer of hope about a fiscal deal in the US; recent US data support the widely held view that more stimulus is needed.

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Dollar Firm as Markets Digest Rising Virus Numbers

Markets are digesting the rising infection rates across Europe; the dollar is taking another stab at the upside. Speculation is picking up that a compromise on a stimulus package could be reached; reports suggest House Democrats are working on a new $2.4 trln package as a basis for these negotiations.

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Dollar Remains Firm Ahead of Powell Testimony

The dollar remains firm on continued safe haven flows but we still view this situation as temporary. Fed Chair Powell appears before the House Financial Services Panel with Treasury Secretary Mnuchin; the text of Powell’s testimony was released already.

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Dollar Gains from Risk-Off Trading Unlikely to Persist

Markets are starting the week in risk-off mode; the dollar is firm on some safe haven flows but this is likely to prove temporary. US politics is coming in to focus as the election nears; we fear that the likely horse-trading and arm-twisting will take away any residual desire to get another stimulus package done.

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Risk Appetite Ebbs Ahead of BOE Decision

The dollar has gotten some limited traction despite the dovish FOMC decision; the FOMC delivered no surprises. We are seeing some more movement on fiscal stimulus; August retail sales disappointed yesterday.

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Dollar Bounce Ends Ahead of ECB Decision

The dollar rally ran out of steam; US Senate will hold a vote today on its proposed “skinny” bill. US reports August PPI and weekly jobless claims; US will sell $23 bln of 30-year bonds today after a sloppy 10-year auction yesterday BOC delivered a hawkish hold yesterday; Peru is expected to keep rates steady at 0.25%.

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Sterling Pounded by Brexit Developments

The dollar rebound continues; odds of a near-term stimulus bill in the US are falling; ahead of inflation readings later this week, the US holds a 10-year auction today. Bank of Canada is expected to keep policy steady; Mexico reports August CPI; Brazil reports August IPCA inflation.

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Dollar Softens, Equities Rise as Markets Ignore the Negatives

Markets seem to be increasingly desensitized to the usual negative drivers; the dollar is under pressure again. Stimulus talks remain stalled; reports suggest Trump is mulling a capital gains tax cut of some sort. US data highlight today will be July PPI; US Treasury begins its record $112 bln quarterly refunding.

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Dollar Weak Ahead of Likely Dovish Hold from the Fed

The FOMC decision today is likely to deliver a very dovish tone; the dollar tends to weaken on FOMC decision days. Tensions about the latest US stimulus bill are rising; core bond yields have been remarkably stable over the last several months.

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Dollar Stabilizes but Further Losses Likely

The dollar is stabilizing today but further losses are likely. Senate Republicans have proposed a sharp cut to weekly unemployment benefits; Senator Collins will oppose Judy Shelton’s nomination to the Fed. Regional Fed manufacturing surveys for July will continue to roll out; early July reads for the US economy support our view that Q3 is off to a rocky start.

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Dollar Remains Under Pressure as European Outlook Shines

The outlook for risk assets remains uncertain; the dollar continues to make new lows; the uncertain outlook continues to propel gold and silver higher. The next round of stimulus in the US is proving to be difficult; regional Fed manufacturing surveys for July will continue to roll out. German July IFO survey came in better than expected; eurozone June M3 rose 9.2% y/y vs. 8.9% in May.

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Market Sentiment Boosted by Stimulus Outlook

Today, it’s all about the stimulus; the dollar remains under pressure. Mnuchin and Pelosi kick off the first round of talks for the next stimulus package this afternoon; it’s another quiet day in terms of US data; Canada reports May retail sales EU finalized its recovery package; UK reported June public sector net borrowing; Hungary is expected to cut rates 15 bp to 0.60%.

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Market Sentiment Dented by Weak Data and Rising US-China Tensions

Market sentiment has been dented by more than just rising virus numbers; yet the dollar continues to trade within recent well-worn ranges. California’s decision to reverse partial reopening will likely have a huge economic impact; June CPI may hold a bit more interest in usual; June budget statement is worth a quick mention.

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Dollar Rangebound in Quiet Start to an Eventful Week

Today marks a relatively quiet start to what is likely to be one of the most eventful weeks we’ve seen in a while; the dollar remains within recent well-worn ranges. The US continues to ratchet up trade tensions; the only US data report today is the June budget statement.

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Dollar Bid as Market Sentiment Yet to Recover

The US has started the formal process of withdrawing from the WHO; the dollar continues to benefit from risk-off sentiment but remains stuck in recent ranges. The White House is asking Congress to pass another $1 trln stimulus plan by early August; President Trump hosts Mexican President AMLO for a two-day visit.

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Dollar Soft Ahead of Jobs Report

Re-shutdowns continue to spread across the US; the dollar has come under pressure again. Jobs data is the highlight ahead of the long holiday weekend in the US; weekly jobless claims will be reported. FOMC minutes were revelatory; the Fed for now will rely on “outcome-based” forward guidance and asset purchases to achieve its goals; US House passed the latest China sanctions bill.

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Dollar Begins the Week Under Pressure Again

The virus news stream remains negative; pressure on the dollar has resumed. The US economy is taking a step back just as Q3 is about to get under way; there are some minor US data reports today. UK Labour leader Starmer overtook Prime Minister Johnson in the latest opinion poll; Macron’s party did poorly in French local elections.

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Dollar Firm as Risk-Off Sentiment Persists

Higher infection numbers in the US and other countries continue to fuel risk aversion across global markets; the IMF released more pessimistic global growth forecasts yesterday. The US has rekindled trade provocations against China through Huawei; weekly jobless claims will be reported; regional Fed manufacturing surveys for June will continue to roll out.

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Dollar Firm as Risk-Off Sentiment Returns

Risk-off sentiment has picked up from reports that the US will impose new tariffs against the EU; there’s also been a messy set of headlines regarding the virus contagion outlook in the US. The IMF will release updated global growth forecasts today; the dollar is benefiting from risk-off sentiment; another round of fiscal stimulus in the US is in the works.

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