Tag Archive: FX Daily

FX Daily, February 18: Dollar Drifts Lower

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 08: Dollar Index Seven-Day Advance is the Longest in Two Years

Overview:  As North American traders return to their posts to put the finishing touches on the week's activity, the Dollar Index is extending its advance for a seventh consecutive session.  If sustained, it will be the longest advance since February 2017. 

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FX Daily, February 06: Dollar Gains by Default

Overview: The rally in equities is threatening to pause today, even though the few markets open in Asia edged higher.  Europe's Dow Jones Stoxx 600, which has advanced in eight of the past ten sessions and six in a row, is seeing some profit-taking pressures.  US shares are also trading heavier in Europe.  The S&P 500 has a five-day rally in tow but looks poised for some backing and filling action. 

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FX Daily, February 05: Greenback Remains Firm

Overview: The US dollar is little firmer against most of the major currencies.  Despite some disappointing data (retail sales, trade, PMI), the Australian dollar has recovered from initial losses below $0.7200 on the back of the central bank's reluctance to adopt an easing bias.  A small upward revision in the eurozone's flash service and composite PMIs help steady the euro after it neared $1.14.

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FX Daily, February 01: Did the Fed Steal the Jobs Data Thunder?

Overview:  Weak manufacturing PMI readings are curbing risk appetites ahead of the US jobs report.  Growth concerns are top and center after dovish Fed and the Bundesbank's Weidmann warning that Germany may undershoot 1.5% growth this year, though the ink is barely dry on the central bank's forecast for 1.6% growth this year and next.

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FX Daily, January 31: Did Powell Toss in the Towel or was it a Tactical Retreat?

Overview: The Fed's dovish tone and earnings news are the main drivers of the capital markets today, helping lift stocks, bonds, and currencies.  Large equity markets in Asia, including Japan, Hong Kong, China's CSI 300, India, and Indonesia, all rose more than 1%, putting the MSCI Asia Pacific Index in a good position to extend its rally for a fourth consecutive week. 

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

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 28: Getting Ducks Lined Up for Later in the Week

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 25: Euro Pares Yesterday’s Losses and Sterling Pulls Back after topping $1.31

Overview:  The US dollar is paring yesterday's gains against most of the major and emerging market currencies. Sterling pushed above $1.31, an 11-week high on news that the DUP would support Prime Minister's Plan B that calls for limits on the backstop with Ireland, something that the EC and Ireland have indicated are not on the table.

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FX Daily, January 23: Markets Walk Tightrope after Yesterday’s US Equity Drop

Overview:  Global equities have fared better than the 1.4% slide in the S&P 500 yesterday may have implied. Asian markets were mixed, with China, Korea, Hong Kong, Thailand advancing. The Dow Jones Stoxx 600 from Europe is a little changed after falling for the past two sessions. 

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FX Daily, January 14: Dismal Chinese Trade Data Sets Tone

Overview:  China's exports and imports were weaker than expected, though the trade surplus swelled to its widest in a couple of years. The implications have undermined equities and weighed on risk appetites more broadly. Nearly all the Asia-Pacific markets were lower except Japan and the Dow Jones Stoxx 60o in Europe is off 0.5% near midday to snap a four-day advance.

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FX Daily, December 07: A Couple More Events before Seeing the End of Difficult Week for Investors

Overview: Global equities have stabilized after US equities recovered yesterday, with the NASDAQ 100 staging its biggest reversal in eight months and the S&P500 recouped almost three percent to close 0.15% lower. Asia Pacific equities were mostly higher. Hong Kong shares, including the mainland shares that trade there, were the notable exception.

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FX Daily, December 06: New Spanner in US-China Relations Weighs on Risk Appetites

Overview: The global capital markets were fragile amid trade uncertainty and economic slowdown fears. News that Canada arrested the CFO of Huawei on behalf of the US, ostensibly for violating the embargo against Iran triggered an almost immediate risk-off wave that has extended the equity markets losses, sending core bond yields lower, with the US 10-year slipping below 2.9%, and underpinning the dollar against most currencies, with the notable...

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FX Daily, November 28: Powell Awaited

Overview:  Global capital markets are relatively calm as investors gird for drama.  The Bank of England reports its assessment of the impact of Brexit and the stress tests a little before Fed Chair Powell speaks at midday in NY.  The G20 meeting begins Friday, and several bilateral meetings are taking the spotlight from the larger gathering. 

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FX Daily, November 27: Market Shrugs Off Latest US Tariff Provocation

The global capital markets have taken the US latest tariff threats in stride.  Most of the Asian equity markets advanced, including Japan, Korea, Taiwan, India, and Australia. China and Hong Kong were exceptions with marginal losses. European markets are trying to extend their recovery for a third session, but the industry performance is mixed with energy and materials lower, and utilities, consumer staples, and information technology/communication...

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FX Daily, November 12: Sterling’s Losses Lead Dollar Rally

Overview: The US dollar is enjoying broad gains against most major and emerging market currencies. Sterling, dragged down by Brexit concerns, is leading the way. With today's losses, sterling has shed nearly 3.7 cents over the last four sessions. The euro, for its part, is at a new 17-month low (~$1.1250). 

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FX Daily, October 12: Market Fever is Burning Itself Out Ahead of the Weekend

 Equity markets are stabilizing today as Asian and European markets shrug off the failure to get traction in the US yesterday.   As everything and nothing was behind the dramatic sell-off in recent days, the same could be said about today's recovery.  Most accounts seem to be emphasizing two developments:  a report indicating that despite the talk earlier in the week, there is a recognition by the US Treasury staff that China's actions do not reach...

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FX Daily, September 14: Dollar Losses Extended

The US dollar remains on the defensive after retreating yesterday.  Its losses against the most of the major and emerging market currencies are being extended today.  The combination of softer US inflation coupled with a less dovish than expected ECB, a Bank of England lifting growth forecasts, while warning that a Brexit without an agreement could spur higher mortgage rates, and a more aggressive rate hike by Turkey conspired to force the dollar...

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FX Daily, September 12: Dollar Chops in Narrow Ranges

Eurostat confirmed that EMU industrial output fell for a second consecutive month in July. The 0.8% decline was larger than expected and is the third decline of such a magnitude in four months and weighed on the euro. German and Spanish industrial output had surprised on the downside last week, and Italy matched suit today with a report showing a 1.8% contraction, much larger than expected, and bringing the year-over-year rate to -1.3% (workday...

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FX Daily, September 11: Dollar May Prove Resilient if it is Turn Around Tuesday

The euro and sterling extended their recovery from the US hourly earnings lows seen before the weekend. However, the move stalled in the European morning, after the UK reported better than expected earnings itself. Sterling approached the 61.8% retracement of the decline from the July high (~$1.3365) found just below $1.31. It has been correcting higher since reaching almost $1.2660 on August 15.

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