Tag Archive: Eurozone Producer Price Index

FX Daily, November 5: Animal Spirits Remain Animated

The prospects that the US-China deal could include some rolling back of existing US tariffs helped underpin risk appetites. After new record highs in the US S&P 500 and NASDAQ, Asia Pacific markets marched higher, and the MSCI Asia Pacific reached its highest level since August 2018. A small rate cut by China and catch-up by Tokyo, which was on holiday on Monday, helped extended the regional rally for the 14th session in the past 17.

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FX Daily, October 3: Shades of Q4 18?

Overview:  Disappointing economic data again drove US equities lower, which in turn carried into Asia Pacific activity. Losses were recorded throughout the region, with the notable exception of Hong Kong. The Nikkei and Australia's ASX were off by 2%. After its largest losing session of the year (-2.7%) yesterday, Europe's Dow Jones Stoxx 600 continues to trade heavily.

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FX Daily, August 2: End of Tariff Truce Trumps Jobs

Overview: The market was finding its sea legs after being hit with wave and counter-wave following the FOMC decision, and more importantly, Powell's attempt to give insight into the Fed's thinking. Trump's tweet than signaled an end to the tariff truce with a 10% levy on the $300 bln of imports from China that have not been subject to action previously.

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FX Daily, July 2: Post-G20 Euphoria Fades, Stuck with Same Reality

Overview: The euphoria that greeted the resumption of US-China and US-North Korea talks has subsided. Global equities have turned mixed after yesterday's surge. Hong Kong played catch-up, and despite ongoing demonstrations, the Hang Seng rallied over one percent, and the Hong Kong Dollar strengthened beyond its band midpoint for the first time in nine months.

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FX Daily, March 02: Markets Unanchored?

The announcement of the US intention to impose tariffs on imported steel and aluminum on national security grounds has sent ripples through the capital markets. Yet there is certainly more going on here than that. The tariffs, justification, and magnitude have indicated and expected. After reversing lower on Tuesday and selling off on Wednesday, equity investors hardly needed a fresh reason to sell on Thursday.

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FX Daily, February 02: A Note Ahead of US Jobs Report

The US dollar is sporting a firmer profile against all the major currencies after weakening yesterday. Frequently, it seems the Australian dollar leads the other currencies, and we note that it is making a new low for the week today. Briefly, in Europe, it slipped below its 20-day moving (~$0.7985) average for the first time since December 13.

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

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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Bubble Watch: Warning Signs That The Everything Bubble Will Burst in 2018

I believe 2018 will be the year inflation arrives. The reason, as I’ve noted throughout mid-2017, is that multiple Central Banks, particularly the European Central Bank (ECB), Bank of Japan (BoJ) and Swiss National Bank (SNB) have maintained emergency levels of QE and money printing, despite the fact that globally the economy is performing relatively well.

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FX Daily, December 04: US Dollar Marked Higher After Senate Passes Tax Reform

The US dollar opened higher in Asia and retained those gains through the European morning. The greenback has recouped most of the pre-weekend losses recorded in the wake of the indictment of a fourth former Trump Administration official by the special investigation into Russia's involvement in last year's election. However, two weekend developments seemed to blunt the impact of the guilty plea and admission of cooperation.

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FX Daily, October 03: Dollar Retains Firm Tone, Spanish Markets Stabilize

Firm US interest rates and a strong manufacturing ISM yesterday help support the greenback, while disappointing construction PMI in the UK weighs on sterling. The euro briefly slipped below $1.17 in Asia for the first time in six weeks. It has recovered toward the highs seen in North America yesterday (~$1.1760). There are several euro option strikes that may be in play today. In the euro, between $1.1750 and $1.1775, there are nearly 2.9 bln euros...

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FX Daily, August 02: Euro Climbs Relentlessly, While Greenback is Mixed

The euro's strength is surely partly a reflection of US dollar weakness, but it is also a reflection of the improved sentiment among investors. The initial dollar losses at the start of the year was largely a correction that is common after a Fed hike. This is more or less what happened at the start of 2016 as well, following the Fed hike in December 2015.

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FX Daily, June 02: Dollar Marks Time Ahead of US Jobs Report

The foreign exchange market is becalmed, leaving the US dollar narrowly mixed. The euro has been confined to less than a 20-pip range through the Asian session and most of the European morning. The news stream is light. The US withdrawal from the Paris Accord may have garnered the headlines, but as a market force, it is difficult to detect the immediate impact.

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FX Daily, May 03: Marking Time

The global capital markets are relatively calm. Japan, South Korea, and Hong Kong markets are closed for national holidays. Investors await the FOMC statement, though expectations could not be much lower. The disappointing US auto sales, and poor Apple sales figures reported yesterday have had little impact on the broader investment climate.

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FX Daily, March 02: Dollar Remains Bid

The US dollar is bid against the major currencies as the combination the increased expectation of a Fed rate hike and the President's commitment to fiscal stimulus buoys sentiment. The dollar-bloc, where speculators in the futures market, have grown a net long position, are leading the move.

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FX Daily, December 02: Is it About US Jobs Today?

The capital markets are finishing the week amid speculation that the driving forces of the past three weeks are ebbing. Global equities and the dollar may be snapping three-week advances. The issue is whether it is a consolidation or trend change. The former is a more prudent assumption until proven otherwise. As a rough and ready signal, the 100.60 level in the Dollar Index, which corresponds to the lows November 22 and November 28 is reasonable.

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FX Daily, October 04: Sterling’s Slide Continues, EUR/CHF Soars Again

UK Prime Minister May's comments at the Tory Party Conference over the weekend played up the risk of what has been dubbed a hard Brexit and triggered a slide in sterling saw it fall to new 30-year+ low against the dollar just below $1.2760. The EUR/CHF has soared again. Later during the day, it has even achieved 1.0970.

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FX Daily, July 04: Four Things that Happened on the Anniversary of the Original Brexit

Inflation expectations fall in Japan. UK construction PMI fell sharply before Brexit. The Australian dollar recovers from the dip as investors await more results. It is not clear that Brexit has sparked a wave of nationalism or anti-EU sentiment.

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