Tag Archive: EUR/CHF and USD/CHF

FX Daily, March 08: Equities Slump on Growth Concerns ahead of US Jobs

2019-03-08

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2019-03-08

Overview: A weak economic assessment in the Beige Book and an ECB that slashed growth forecasts have been followed by news of a nearly 21% slump in China's exports have marked the end of the dramatic equity rally that was seen in the first part of 2019 after the sharp losses late last year. 

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FX Daily, March 07: EMU Looks to ECB

2019-03-07

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2019-03-07

The ECB meeting is today's highlight. A dovish signal is expected. The euro remains pinned near its lows ahead it. The global equity market rally in January and February is faltering this week. Asian equities were mixed, but the Nikkei eased for the third consecutive session.

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FX Daily, February 28: Trump Walks Away from North Korea. Should Beijing Worry?

2019-02-28

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2019-02-28

Overview:  News that the US-North Korean summit ended abruptly without an agreement spurred losses in equities and gains in the Swiss franc and Japanese yen. US President Trump willingness to walk away from the talks is important in and of itself, but it also sends a warning not to go all in on a US-China trade agreement that could also sour at the last minute.

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FX Daily, February 18: Dollar Drifts Lower

2019-02-18

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2019-02-18

Overview:  In quiet turnover, the US dollar slipped lower against most of the major currencies to start the new week.  The news stream is light and the US markets are closed today.  The MSCI Asia Pacific Index was up five of the past six weeks and extended its gains today.  Nearly all the equity markets in the region rose but India.

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FX Daily, February 13: QT is not the Opposite of QE

2019-02-13

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2019-02-13

silence
The Federal Reserve has long been clear on the sequence of events as it innovated the playbook during the Great Financial Crisis. There would be a considerable period between when the Fed would finish its credit easing operations that involved purchasing Treasuries and mortgage-backed securities (MBS) and its first-rate hike.

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FX Daily, February 12: Dollar Buying Pressure Subsides

2019-02-12

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2019-02-12

The Dollar Index's eight-day advance is in jeopardy. Although the greenback recorded new highs against some major currencies, the momentum appears to be stalling. The news stream is constructive as a compromise seems to have been reached to avoid another US government shutdown, and there is some optimism that the US and China will strike a deal even if not by March 1.

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FX Daily, February 11: Dollar Starts New Week on Firm Note

2019-02-11

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2019-02-11

Lifted by the re-opening of Chinese markets after the week-long Lunar New Year holiday, global equities are trading firmer. Outside of Japanese markets that were closed, the large markets in Asia--China, Taiwan, South Korea, and Hong Kong advanced.

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FX Daily, February 07: Dollar’s Gains Extended

2019-02-07

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2019-02-07

The five-day advance of the S&P 500 stalled yesterday and global equities are mixed today. Most Asian centers remain closed, Japan and some small markets were lower, while Taiwan, Australia, and India moved higher. The seven-day rally in Europe's Dow Jones Stoxx 600 is under threat today.

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FX Daily, January 30: She Can’t Accept No

2019-01-30

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2019-01-30

Overview: The UK Prime Minister has two weeks to strike a new deal with the EC over the Irish backstop or return to Parliament in mid-February to consider alternatives, six weeks before Brexit. Sterling has recovered about half of yesterday's drop. The Australian dollar jump back to $0.7200 was aided by the nearly 10% jump in iron ore price after Vale announced a sharp reduction in output.

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FX Daily, January 29: Fragile Tone Persists

2019-01-29

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2019-01-29

The positive impulse in the capital markets seen last week has faded. The gap higher opening ahead of the weekend by the S&P 500 was follow by a gap lower opening yesterday. The US threatened crackdown on Huawei disrupted equities in that sector, with as many as two dozen companies on the Shenzhen exchange that were limit down (10%).

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FX Daily, January 28: Getting Ducks Lined Up for Later in the Week

2019-01-28

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2019-01-28

Overview: The global capital markets are consolidating ahead of this week's big events, which include the FOMC meeting, US jobs, an important Brexit vote in the UK parliament and the first look at Q4 EMU and US GDP. The US dollar is narrowly mixed. Equities are mostly lower. European benchmark 10-year yields have edged up, though the US 10-year yield is struggling to hold above 2.75%.

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FX Daily, January 22: Dollar Consolidates and Equity Rally Stalls

2019-01-22

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2019-01-22

The US dollar is firmer against most major and emerging market currencies. The yen is a notable exception, and it is firmer, but well within recent ranges. The dollar-bloc currencies and the Norwegian krona are the weakest of the majors as a setback in equities and oil reflects a diminished risk appetite.

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FX Daily, January 18: Markets Finishing Week on Positive Note

2019-01-18

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2019-01-18

Sentiment has improved since the volatility last month spooked investors and, perhaps, some policymakers. Global equities are rallying. The Shanghai Composite and the Nikkei are at their best levels in almost a month, while the Dow Jones Stoxx 600 is at its best level since early December, gapping above a downtrend in place since late last September.

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FX Daily, January 17: Risk Assets Underperform as Investors Await Fresh Developments

2019-01-17

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2019-01-17

The capital markets remain relatively subdued as fresh trading incentives are awaited, including US corporate earnings. Some of the enthusiasm for risk-assets has diminished. The MSCI Emerging Markets Index has stalled after trading at six-week highs yesterday, though most bourses in Asia were higher, but the Nikkei (Topix gained), China, and Singapore.

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FX Daily, January 15: New Phase Begins with UK Vote

2019-01-15

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2019-01-15

Several of the equity benchmarks are flirting with six-week highs, including MSCI Asia Pacific Index and the Emerging Markets Index. The Dow Jones Stoxx 600 is trying to extend its advancing streak for a third week, something not done since July.

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FX Daily, January 07: Recovery Falters in Europe

2019-01-07

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2019-01-07

Overview:  The combination of robust US jobs and wage growth, more comforting words from Powell and a strong rally US stocks before the weekend helped lift Asian markets today and underpinned risk-taking appetites.  However, renewed protests in France (and Hungary) coupled with weak German factory orders have prevented European bourses from fully participating in the equity recovery. 

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FX Daily, December 17: Markets Quiet to Start Fed Week

2018-12-17

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2018-12-17

Activity in the global capital markets is subdued as investors move to the sidelines as the year-end approaches. The Federal Reserve headlines the holiday week that also features a Bank of England a Bank of Japan meeting. Only the Fed is expected to change rates.

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FX Daily, December 13: May Survives but its Draghi’s Day

2018-12-13

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2018-12-13

Overview: There is a sense of optimism among investors today that may be tested as the session progresses. News that China may reconsider its "Made in China 2025" initiative as an apparent concession to the US while reports suggest it has bought 1.5-2.0 mln tons of soy is easing trade tension fears. 

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FX Daily, December 12: Markets Calm on May Day

2018-12-12

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2018-12-12

The US S&P 500 failed to sustain the early upside momentum, but global equities are moving higher today, and there is some optimism on the trade front. Emerging market equities and currencies are also doing well today.

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FX Daily, December 11: Fragile Calm Threatens to Break Out

2018-12-11

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2018-12-11

Indications that US and Chinese trade talks are proceeding, coupled with a dramatic reversal in the S&P 500 yesterday is helping stabilize the capital markets today. Asian equities were mixed, but the Greater China (China, Hong Kong, and Taiwan markets) alongside India and Australia posted modest gains.

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