Tag Archive: Eurozone Consumer Price Index

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

FX Daily, July 17: Back to the Well Again

2019-07-17

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2019-07-17

Overview:  After slapping punitive tariffs on structural from China and Mexico last week, US President Trump threatened to end the tariff truce with China because it is not stepped up its purchases of US agriculture products.  Trump said the tariff freeze was in exchange for ag purchases, but at the time it seemed as if granting licenses to US companies to sell to Huawei was the quid pro quo.

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FX Daily, June 28: The World may Look Different Come Monday

2019-06-28

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2019-06-28

Overview: Quarter-end positioning seems to dominate today's activity. The outcome of bilateral talks at the G20 gathering partly reflects the influence of the US President who eschews multilateral efforts as a hindrance to its sovereignty.  Equities in Asia Pacific slipped today but held on to modest gains for the week.

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FX Daily, June 18: Draghi Ends Calm Ahead of FOMC, Sending the Euro and Yields Down

2019-06-18

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2019-06-18

Overview:  ECB President Draghi underscoring the likely need for more stimulus broke the subdued tone as market participants took a "wait and see" stance ahead of tomorrow's FOMC decision.  Draghi's comments sent the euro through $1.12 for the first time in two weeks and drove European bonds yields to new lows.

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FX Daily, June 04: Nervous Calm Settles Over Markets

2019-06-04

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2019-06-04

The global capital markets are stabilizing today after taking a body blow of broadening the use of US tariffs (in migration dispute with Mexico), threatening the ratification of NAFTA 2.0, and still escalating hostile rhetoric between the US and China, and the threat of anti-trust action against the largest digital platforms.

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FX Daily, May 17: China Questions US Sincerity

2019-05-17

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2019-05-17

Since the presidential tweets on May 3, the US had the initiative in the negotiations with China, but today, China has pushed back. It is cool to the idea promoted by the US that trade talks will resume shortly. Now it may take the Trump-Xi meeting at the end of next month to restart talks. This, coupled with US sanctions on Huawei banning imports from it and sales to it, threatens to disrupt business and this took a toll on Chinese, Taiwanese and...

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FX Daily, May 03: Ahead of US Jobs Report, the Greenback Remains Firm

2019-05-03

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2019-05-03

Overview: The US April jobs data stand before the weekend, and the greenback is holding on to most of yesterday's gains as participants wait for the report. Equities in the Asia Pacific region were mixed without leadership from China and Japan, where the markets remain closed for the extended holiday. On the week, Australia's ASX was the worst performing.

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FX Daily, April 17: Veracity of Chinese Data Questioned, but Lifts Sentiment Nevertheless

2019-04-17

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2019-04-17

The veracity of Chinese data will be questioned by economists, but today's upbeat reports round out a picture that began with stronger exports and a surge in lending. Chinese officials, we argue, had a "Draghi moment" and decided to do "whatever it takes" to strengthen the economy in the face of US tariffs and during the 70th anniversary of the Revolution.

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FX Daily, July 31: BOJ Prepares for QE Infinity

2018-07-31

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2018-07-31

The Japanese yen has been sold following the adjustments to policy and outlook by the BOJ that will allow the unconventional policies continue for an "extended period of time." Cross rate pressure and month-end demand have lifted the euro and sterling through yesterday's highs.

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FX Daily, May 31: Don’t Confuse Calmer Markets with Resolution

2018-05-31

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2018-05-31

The global capital markets that were in panic mode on Tuesday stabilized yesterday, and corrective forces have carried into today's activity. However, the underlying issues in Italy and Spain are hardly clarified in the past 48 hours. Moreover, the US push on trade is intensifying again.

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FX Daily, May 03: Respite to Dollar Short Squeeze

2018-05-03

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2018-05-03

The Australian dollar is higher for a second session. It has been helped today by stronger than expected data in the form of a larger than expected March trade surplus (A$1.57 bln vs. expectations for A$865 mln) and building permits up more than twice as expected (2.6% vs. 1.0%). Today is the first session since April 19 that the Australian dollar has risen above the previous day's high. Initial resistance is seen near $0.7550 and then $0.7580.

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FX Daily, April 18: Greenback is Firm, While Soft Inflation Drags Sterling from Perch

2018-04-18

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2018-04-18

The US dollar is enjoying a firmer tone against major and most emerging market currencies. Sterling, which has become a market darling, hit an air pocket after softer than expected CPI. UK headline CPI rose 0.1% in March, while the market expected a 0.3% increase. The recently introduced preferred measure, CPIH slipped to 2.3% from 2.5%, the weakest in a year.

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FX Daily, April 04: Trade Specificities Rattle Markets

2018-04-04

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2018-04-04

Late yesterday, the US announced that specific tariffs and goods that would be targeted for intellectual property violations. China had warned of a commensurate response and earlier today made its announcement. This sent reverberations through the capital markets, driving down equities, corn and soybean prices (subject to Chinese tariffs). The US dollar was sold, especially against the yen, euro, and sterling.

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FX Daily, February 28: It Takes Powell to Convince the Market that Yellen was Right

2018-02-28

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2018-02-28

Many market participants think they heard Fed Chair Powell give a fairly strong signal that he favored a more aggressive course. The implied yield on the December Eurodollar futures rose five basis points to 1.535%. The December Fed funds futures contract rose three basis points.

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FX Daily, February 23: Dollar Firms; VIX Set to Close Lower for Second Week

2018-02-23

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2018-02-23

A light economic schedule in North America may help the markets close the week on a quiet note. Perhaps if there is one number that captures this sense, it may be the VIX. It is soft and barring a new disruption today, it is poised to close lower for the second consecutive week, for the first time this year. The US dollar is steady to higher today and barring a reversal, will close stronger on the week against the major currencies.

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FX Daily, January 17: Dollar Stabilizes After Marginal New Lows

2018-01-17

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2018-01-17

After a shallow bounce in Asia and Europe yesterday, the dollar slipped lower in North American yesterday. Asia was happy to extend those dollar losses, and the greenback was pushed to marginal new lower in Asia, but has come back in the European session. The next result is a choppy but flattish consolidation compared with last week's closing prices.

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FX Daily, January 05: Dollar Given Reprieve Ahead of Employment Report

2018-01-05

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2018-01-05

As the US dollar finished last year, so too did it begin the New Year, and after extending its losses, the bears have paused. Technical factors had been stretched, but it appears to have been old-fashioned macroeconomic considerations to have helped the dollar to move off the mat. Quickly summarized, these considerations are a larger than expected Australian trade deficit, slippage in Japan's service sector PMI, a larger than expected drop in the...

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FX Daily, December 18: Trade Tensions with China Set to Escalate

2017-12-18

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2017-12-18

The two main legislative initiatives in the US this year, the repeal of the Affordable Care Act and the tax changes, are not particularly popular. However, the next items on the agenda appear to enjoy broader support. The infrastructure initiative is likely to be unveiled as early as next month. Before that, the US is poised to ratchet up the tension on China.

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FX Daily, November 30: US Dollar Comes Back Bid, but Brexit Hopes Underpin Sterling

2017-11-30

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2017-11-30

The US dollar is broadly firmer. The rise in US yields yesterday has seen the greenback extend its recovery against the yen. It briefly pushed through JPY112.40, after dipping below JPY111.00 at the start of the week, for the first time since mid-September. Since the end of last week, been capped at the 200-day moving average against the yen, found near JPY111.70, but yesterday it pushed past. There are nearly $1 bln of options struck between...

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FX Daily, November 16: Euro Extends Pullback

2017-11-16

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2017-11-16

After rising to its best level since October 20, the euro reversed direction yesterday and has extended its pullback today. The unexpected tick up in US core CPI and better than expected retail sales may have helped spur the euro losses after three cent run-up over the past several sessions. There bearish candlestick (shooting star) leaves the late euro longs in weak hands.

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FX Daily, October 31: Month-End Leaves Market at Crossroads

2017-10-31

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2017-10-31

Global equity markets are closing another strong month. The MSCI Asia Pacific Index was little changed on the day, but up 4.3% in October, the 10th consecutive monthly advance. Europe's Dow Jones Stoxx 600 is also flattish today, but up 1.6% on the month. It is the second monthly advance after a June-August swoon. The benchmark is closing in on the high for the year set in May.

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