Tag Archive: $JPY

FX Daily, July 24: Euro Recovers from Softer Flash PMI

2017-07-24

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2017-07-24

The euro made a marginal new high in early Asia, but participants rightly drew cautious ahead of the flash eurozone PMI. The flash PMI was softer than expected, and although the composite fell to six monthly lows, it is more a reflection of how steady it has been at elevated levels.

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FX Weekly Preview: Don’t Be Confused by the Facts or Why Neither the Data nor the Fed Will Alter Market Trends

2017-07-24

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2017-07-24

FOMC is the highlight of the week. Early look at July inflation in Europe may see less pressure. Overall household consumption in Japan is rising, helped by robust labor market, but little new price pressures. The data this week is expected to confirm what many investors have come to assume.

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FX Daily, July 21: Dollar Licks Wounds as News Stream Doesn’t Improve

2017-07-21

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2017-07-21

The euro has depreciated by 0.13 to 1.1043 CHF. ECB President Draghi did not argue forcefully enough at yesterday's press conference to dampen the enthusiasm for the euro. The initial dip was quickly bought and the euro chased above last year's high near $1.1615, and the gains have been extended to nearly $1.1680 today. The next target is the August 2015  near $1.1715 is near.

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FX Daily, July 19: Dollar Stabilizes on Hump Day, Awaits Thursday’s BOJ and ECB Meetings

2017-07-19

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2017-07-19

After being shellacked to start the week, the US dollar is being given a small reprieve today as investors await tomorrow's BOJ and ECB meetings. The US may also report a bounce back in housing starts (residential investment) after a three-month slide.

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FX Daily, July 18: Dollar Dumped on Doubts on US Economic Agenda

2017-07-18

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2017-07-18

News of the defection of two more Republican Senators doomed the Senate attempt to replace and repeal America's national health care. The failure to replace the system dubbed Obamacare, despite the Republican majority in both legislative chambers and the executive branch raises questions about the broader strategy of the Administration and raises serious questions about the rest of its legislative agenda.

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FX Weekly Preview: Focus Shifts from Fed to ECB

2017-07-17

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2017-07-17

Market has downgraded chances of a September hike from low to lower, but the chances of a December hike are higher than the day after the June hike. ECB meeting is the most important event of the week. A small change in the risk assessment is likely. The US and Europe have been more disruptive to the global capital markets this year than China.

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FX Daily, July 12: Currencies Stabilize, but Yen Strengthens

2017-07-12

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2017-07-12

The US dollar and sterling have stabilized after being sold off yesterday. The yen, which had begun recovering from a four-month low, is the strongest of the major currencies today, gaining around 0.5% against the dollar (@~JPY113.40).

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FX Daily, July 11: Markets Looking for Next Cue

2017-07-11

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2017-07-11

Investors await fresh policy clues as the Bank of England's Broadbent is seen as a key vote on a closely balanced MPC, while the Fed's Brainard, is also seen as a bellwether, will speak shortly after midday in NY. Broadbent has not spoken since the election, and his current views are not known.

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FX Daily, July 07: Taper Tantrum 2.0 Dominates

2017-07-07

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2017-07-07

Taper Tantrum 2.0, emanating from Europe rather than the United States continues to overshadow other developments. Yesterday, the yield on the 10-year German Bund pushed through the 50 bp mark that has capped the occasional rise in yields in recent months. The record of the ECB meeting was understood as indicating that the official assessment had surpassed the actual communication in order try to minimize the impact.

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FX Daily, July 06: Stocks and Bonds Mostly Heavier, while Dollar Hovers Little Changed

2017-07-06

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2017-07-06

The US dollar is narrowly mixed against the major currencies after being confined to tight ranges through the Asian session and European morning. Equities are nursing small losses, and interest rates are pushing higher. The yield on the 10-year German Bund reached 50 bp for the first time since early 2016. Oil prices have steadied after yesterday's slide.

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FX Daily, July 05: Dollar Firm as Investors Await Fresh Directional Cues

2017-07-05

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2017-07-05

The US dollar is enjoying a firm tone today. Yesterday's two weakest major currencies, the Australian dollar and Swedish krona are the strongest currencies, but little changed on the session. After a strong rebound in the greenback to start the week, it mostly consolidated yesterday.

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FX Daily, July 03: Dollar Bounces to Start H2

2017-07-03

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2017-07-03

The beleaguered US dollar is enjoying a respite from the selling pressure that pushed it lower against all the major currencies in the first six months of 2017. A measure of the dollar on a trade-weighted basis fell about 5% in the first half after appreciating nearly 8% in Q4 16.

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FX Weekly Preview: Official Coordination or Is the Market Getting Ahead of Itself?

2017-07-03

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2017-07-03

The consensus narrative sees a coordinated attempt by officials to prepare investors for less accommodative monetary policy. Data from the eurozone and UK may suggest the respective economies are not accelerating. Before getting to the jobs report, the US economic data, like auto sales, may be soft, while the prices paid in the manufacturing ISM may ease.

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FX Daily, June 30: Greenback Stabilizes

2017-06-30

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2017-06-30

The US dollar has been battered this week amid a shift in sentiment seen in how the market responded to comments mostly emanating from the ECB's annual conference. It is not really clear that Draghi or Carney gave new policy indications.

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FX Daily, June 29: Run on Dollar and Yen Continues

2017-06-29

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2017-06-29

The main driver of the foreign exchange market is the continued reassessment of the trajectory of monetary policy in the UK, EMU, and Canada. The OIS market does not show that higher rates are discounted for the next policy meeting (August, September, and July respectively), but rather there is greater confidence that, outside of Japan, peak monetary stimulus is behind us.

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Great Graphic: Dollar Breaks Out Against Yen

2017-06-28

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2017-06-28

Dollar's Decline
The dollar is at new lows for the year against the euro and Swiss franc. Draghi's comments earlier that transitory forces are dampening price pressures were seen as broadly similar to the Fed's leadership's assessment about US prices. The implication is that the ECB will announce tapering its purchases as it extends them into next year.

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FX Daily, June 26: Italian Markets Shrug off Banking Morass and Local Election Results

2017-06-26

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2017-06-26

The US dollar is mostly slightly firmer as North American dealers return to their posts. Ideas that the UK Tories are getting close to a deal with the DUP appears to be lending sterling a modicum of support, as it tries to extend its uptrend into a fourth session. The Japanese yen is the weakest of the majors, rising equities, and yields, spurs the dollar to re-challenge last week's high near JPY111.80.

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FX Weekly Preview: Drivers A Couple Things that Aren’t on Your Economic Calendar

2017-06-26

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2017-06-26

Fed, ECB and BOJ preferred inflation measures will be reported, but are unlikely to change views. Canada's Survey of Senior Loan Officers may be more important than April GDP. US healthcare bill in the Senate and likely action on steel could be the most significant events in the week ahead.

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