Tag Archive: EUR/USD
Three Developments in Europe You may have Missed
The focus in Europe has been Catalonia's push for independence and the attempt by Madrid to prevent it. Tomorrow's ECB meeting, where more details about next year's asset purchases, is also awaited. There are three developments that we suspect have been overshadowed but are still instructive. First, the ECB reported that its balance sheet shrank last week. With the ECB set to take another baby step toward the exit, many are seeing convergence,...
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Political Focus Shifting in Europe
There was a huge sigh of relief among investors when it became clear that the populist-nationalist wave that ostensibly led to Brexit and Trump's election was not going to sweep through Europe. The euro gapped higher on April 24, and it has not looked back. We have suggested that with the outcome of the German election, European politics shift from tailwind to headwind.
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Brief Thoughts on the Euro
Euro peaked a month ago. The reversal before the weekend marks the end of the leg lower. ECB meeting is next big focus. ECB may focus on gross rather than net purchases.
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FX Weekly Review, September 04 – 09: Draghi Dovish? EUR and USD falling against CHF
The euro rose close to CHF 1.15 with the ECB meeting this week. Finally traders realized that the ECB committed not to hike rates for a very long time. The ECB will review and take a first decision on the bond purchasing program this autumn. However, this program will come to an end only when the inflation target of 2% becomes in reach.
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FX Weekly Review, August 28 – September 02: The end of big euro rise?
For us, the sudden euro rise from 1.08 to 1.14 is an illusion, the euro will fall sooner or later again. Macron will not help the French economy and low core inflation will prevent that the ECB ends her bond buying program.
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FX Weekly Review, August 21 – August 26: Dollar Loses its Gains Against CHF
The broad technical condition of the dollar deteriorated materially before the weekend. The dollar had some gains versus the franc during the last month, but it lost all during the last days.The EURCHF continues with a 2.5% win for the last month.
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FX Weekly Review, August 14 – August 19: CHF Recovers after Dovish Draghi Comments
The euro has lost some momentum, Draghi does not want to talk about an early end of his bond buying programming. Confirmed by economic data, 1.2% core inflation compared to a long-term inflation target of 2%. Consequently the Swiss appreciated during the week.
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FX Weekly Review, July 31 – August 05: Second Week of Strong CHF Losses
The Swiss Franc entered the second week of stronger losses. While the euro gained 4% last week, the dollar appreciated against the Swiss Franc 2% during this week.
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FX Weekly Review, July 24 – July 29: Swiss Franc getting crushed
The Swiss franc was the only major foreign currency that fell against the dollar last week. The 2.6% decline was the largest in two years.
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FX Weekly Review, July 17 – July 22: Euro and CHF move upwards against Dollar
Both Swiss Franc and Euro were moving upwards against the dollar. So CHF gained 3% versus the dollar in the last month. CHF losses against the euro are smaller, around 1.3%.
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Fighting inflation with FX, a real traders market
The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the Trump administration aimed to reduce the U.S. trade deficit by improving access for U.S. goods exported to Canada and Mexico and contained the list of negotiating objectives for talks that are expected to begin in one month.
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FX Weekly Review, July 10 – July 15: CHF Winning against USD, but losing vs. Euro
The Euro remained the strongest among EUR, CHF and USD during the last month.
The Swiss lost against EUR 1.5%, while it gained versus the dollar 0.75%.
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FX Weekly Review, July 03 – July 08: Second Euro appreciation phase
The ECB appears to be preparing investors for a further adjustment of its risk assessment and a reduction of its asset purchases as they are extended into next year.
This assessment has marked a new phase of an appreciating EUR/CHF rate. It followed the previous phase, the one with and after the French elections.
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FX Weekly Review, June 26 – July 01: Normalization Ideas Weigh on Greenback
A virus has spread across the markets as the first half drew to a close. Many investors have become giddy. The low vol environment was punctuated by ideas that peak in monetary accommodation is past and that the gradual process of normalization is beginning.
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