Tag Archive: $JPY

FX Daily, January 04: Greenback Continues to Consolidate Recent Losses

2018-01-04

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2018-01-04

The US dollar is sporting a softer profile across the board, though remaining largely in the ranges seen over the past couple of sessions. At the same time, the news stream suggests that the global synchronized growth cycle strengthened late last year and is bound to carry over into the New Year.

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The Past is Not Passed: 2017 Spills into 2018

2018-01-03

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2018-01-03

The New Year may have begun in fact, but in practice, full participation may return only after the release of US employment data on January 5. The macroeconomic and policy tables have been set, though interpolating from the Overnight Index Swaps market, there is 45% chance the Bank of Canada hikes rates at its policy meeting near the middle of the month.

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FX Daily, January 2: Dollar Slump Accelerates

2018-01-02

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2018-01-02

The US dollar's slump seen in the final two weeks of 2017 is carried into today's activity. The greenback's sell-off extends to the emerging market currencies as well. The Hungarian forint is the strongest rising nearly 1%, ostensibly helped by the euro approaching last year's high. However, our sense that fumes and momentum more than fresh news is pushing the dollar down is illustrated by the Korean won. It has gained nearly 0.9% today even though...

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FX Daily, December 27: What Happened on Boxing Day?

2017-12-27

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2017-12-27

There were several developments on the day after Christmas, while many markets remained closed and investors sidelined. One of the most important developments was the euro's complete recovery from the flash crash of nearly three percent on Christmas day in the North American time zone.

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FX Weekly Preview: Policy Mix Underlines Positive Fundamental Backdrop for the Dollar

2017-12-18

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2017-12-18

The prospects that the Republican-controlled legislative branch would find a compromise to tax cuts were enhanced when a few senators appeared to capitulate without much to show for it may have helped lift US stocks and dollar ahead of the weekend.

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FX Daily, December 15: Premium for Dollar-Funding is not Helping Greenback Very Much

2017-12-15

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2017-12-15

The cross-currency basis swap continues to lurch in the dollar's direction, especially against the euro, and yet the dollar is not drawing much support from it. The increasing cost reflects pressure for the year-end and does not appear to reflect systemic issues. Dollar auction by the ECB and BOJ do not show any strain. The dollar has a downside bias today against most of the major currencies. And is what is true of the day is true for the week....

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FX Daily, December 13: Greenback Quiet Ahead of Five Central Bank Meetings

2017-12-13

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2017-12-13

The Federal Reserve gets the balling rolling today with the FOMC meeting, which is most likely to deliver the third hike of the year. Tomorrow, four European central banks meet: Norway, Switzerland, the UK, and the ECB. The MSCI Asia Pacific Index rose nearly 0.3%, though Japanese and Indian shares were lower. In Europe, the Down Jones Stoxx 600 is paring yesterday's gains (-0.2%) led by utilities and telecom. Consumer discretion and financials are...

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FX Daily, December 11: Dollar Mixed to Start the Week, While Equities Firm

2017-12-11

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2017-12-11

The US dollar is narrowly mixed in relatively quiet activity. Year-end adjustment is well underway, and the news stream is light to start the week that sees more than a dozen central bank meetings. There is little doubt in the market that the Federal Reserve will hike rates for the third time this year at mid-week.

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FX Daily, December 07: Equities and Oil Stabilize

2017-12-07

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2017-12-07

Global equities are stabilizing today after the recent downside pressure. The MSCI Asia Pacific Index snapped an eight-day slump with a 0.4% gain, led by a rebound in Tokyo and India. European markets are firm, with the Dow Jones Stoxx 600 up around 0.25% near midday in London. All sectors are higher but telecom and real estate are performing best, while energy and health care are laggards.

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

2017-12-04

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2017-12-04

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, 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 29: Sterling Charges Ahead on Brexit Hopes

2017-11-29

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2017-11-29

Prospects of a deal with the EU has sent sterling to its best level in two months against the dollar. It reached $1.3430 in early European turnover. It had sunk to nearly $1.3220 yesterday as European markets were closing, which was a four-day low. It is the strongest of the major currencies today, gaining about 0.4%. With today's gains has met our retracement target near $1.3415. The momentum appears to give it potential toward $1.3500 in the...

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FX Daily, November 28: Greenback Ticks Up in Cautious Activity

2017-11-28

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2017-11-28

The US dollar is consolidating its recent losses with a small upside bias. What promises to be an eventful week has begun with the Bank of England stress test and the publication of the Fed's Powell prepared remarks for his confirmation hearing to succeed Yellen as Chair. Unlike last year, this year's BOE stress test saw all seven banks pass.

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FX Daily, November 27: Slow Start to Busy Week

2017-11-27

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2017-11-27

The US dollar is narrowly mixed and is largely consolidating last week's losses as the market waits for this week's numerous events that may impact the investment climate. These include the likelihood of the US Senate vote on tax reform, preliminary eurozone November CPI, a vote of confidence (or lack thereof) in the deputy PM in Ireland, Powell's confirmation hearing as Yellen's successor, the BOE financial stability report, and stress test, and...

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FX Daily Rates, November 24: Euro Continues to Push Higher

2017-11-24

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2017-11-24

The euro is edging higher to trade at its best levels since the middle of last month. It is drawing closer to the $1.1880 area, which if overcome, could point to return to the year's high seen in early September near $1.2100. There is a combination of factors lifting the euro. The recent data, including yesterday's flash PMI, suggests that the regional economy is re-accelerating here in Q4.

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FX Daily, November 20: German Political Impasse Roils Euro…Briefly

2017-11-20

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2017-11-20

News that the attempt to forge a four-party coalition in Germany collapsed Sunday saw the euro marked down in early Asian activity. The euro fell to nearly $1.1720 in the immediate response to the news, stabilized before turning higher in early European turnover. It quickly recovered and poked through $1.1800. The pre-weekend high was seen near $1.1820.

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FX Daily, November 15: Dollar Slides

2017-11-15

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2017-11-15

The euro and yen are extending their gains, casting a pall over the US dollar. The euro is extending its advance into a sixth consecutive session, which is the longest streak since May. It is approaching last month's highs in the $1.1860-$1.1880 area. As was the case yesterday, a consolidative tone in Asia was followed by strong buying in the European morning. There does not appear to be a fresh fundamental driver.

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FX Daily, November 14: Euro Rides High After German GDP

2017-11-14

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2017-11-14

Sterling is trading in the lower end of yesterday's range and has been confined to about a quarter a cent on either side of $1.31. On the other hand, the euro has pushed a bit through GBP0.8950 to reach its best level since October 26. Sweden also reported softer than expected October inflation.

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