Tag Archive: $JPY

FX Daily, March 21: Dovish Fed Sends Global Yields Lower, but Little Succor for Stocks

2019-03-21

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2019-03-21

The dovishness of the Federal Reserve sent ripples through the capital markets. US equities reversed initial gains, but Asia Pacific equities edged higher, though Japanese markets were closed for a national holiday. European shares are struggling, as financials and consumer discretionary lead the 0.3% push lower. US shares are also trading with a heavier bias.

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FX Daily, March 20: Brexit Drama Continues but Fed Moves to Center Stage

2019-03-20

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2019-03-20

Overview: US stocks were not able to hold onto early gains yesterday, and this has helped set the stage for today's heavier bias. Asia Pacific markets were narrowly mixed, with Japan and Korea eking out small gains while China and Taiwan slipped a little. Europe's Dow Jones Stoxx 600 is threatening to snap a five-day advance as materials, healthcare, and energy leads the profit-taking while communication and real estate are proving a bit more...

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FX Daily, March 19: Third Vote on Withdrawal Bill Scuppered Until after EU Summit

2019-03-19

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2019-03-19

Overview:  The capital markets remain subdued.  Many Asian equity markets eased after a strong two-day advance.  European equities are slightly firmer.  The S&P 500 closed at new five-month highs yesterday.  Benchmark 10-year yields are mostly a little softer.  Australian 10-year bond yield fell five basis points, and the discount to the US widened to a new high since the early 1980s. 

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FX Daily, March 18: Equities Advance, Dollar Slips, Key Events Awaited

2019-03-18

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2019-03-18

The eventful week has begun off slowly. After Wall Street's best week in four months underpinned Asian' equities, where all the markets but Thailand, advanced, led by the nearly 2.5% rally in Shanghai. Note that New Zealand's S&P/NZX 50 rose to new record highs.

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FX Daily, March 15: Euro and Yen Volatility Slips to New Five-Year Lows on the Ides of March

2019-03-15

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2019-03-15

Overview: The capital markets are calm ahead of the weekend.  Outside of Australia and Thailand, Asia Pacific equities advanced, while European shares are mostly little changed. The regional benchmarks, like the S&P 500 have recouped last week's losses.  Benchmark 10-year yields are little changed on the day, leaving the US 10-year yield virtually unchanged on the week near 2.62%.

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FX Daily, March 13: Still Waiting for Brexit Climax

2019-03-13

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2019-03-13

The Brexit drama continues to command attention. A vote on leaving without an agreement will be held today, and if that fails, there will be a vote tomorrow on an extension. Meanwhile, the first increase in headline US CPI in four months failed to impress as the year-over-year pace fell to 18-month lows.

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FX Daily, March 12: Wave of Optimism Sweeps through the Capital Markets

2019-03-12

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2019-03-12

Last minutes statements meant to clarify what many MPs find to be the most odious part of the Withdrawal Bill, the backstop for the Irish border is goosed global equity markets even though it does not seem as if the Withdrawal Bill has changed one iota. And after the big rally in US shares yesterday, there might have been follow-through buying in any case today. Asian markets did not disappoint.

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FX Daily, March 11: Greenback Starts New Week Decidedly Mixed, with Brexit Anxiety Weighing on Sterling

2019-03-11

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2019-03-11

Overview:  Asian shares recovered from opening losses to finish mostly higher, with the Shanghai Composite up nearly 2% and India tacking on 1% after the election was called, starting April 11.  European markets, led by energy, communication, and materials sectors, is up about 0.5% through midday. The S&P 500, which closed lower every day last week is looking a little firmer. 

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FX Daily, March 08: Equities Slump on Growth Concerns ahead of US Jobs

2019-03-08

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2019-03-08

Overview: A weak economic assessment in the Beige Book and an ECB that slashed growth forecasts have been followed by news of a nearly 21% slump in China's exports have marked the end of the dramatic equity rally that was seen in the first part of 2019 after the sharp losses late last year. 

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FX Daily, March 07: EMU Looks to ECB

2019-03-07

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2019-03-07

The ECB meeting is today's highlight. A dovish signal is expected. The euro remains pinned near its lows ahead it. The global equity market rally in January and February is faltering this week. Asian equities were mixed, but the Nikkei eased for the third consecutive session.

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FX Daily, March 6: The Dollar Index Extends Gains into the Sixth Consecutive Session

2019-03-06

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2019-03-06

Overview:  The capital markets are on edge.  The week's big events lie ahead.  The Bank of Canada meets today and the ECB tomorrow, followed by US (and Canada) employment data on Friday.  The equity markets are mixed.  While Japan and Korean equities eased, China's markets continue their tear. 

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FX Daily, March 05: Dollar Remains Firms as China Cuts Growth Target and Taxes, while EMU PMI Surprises on Upside

2019-03-05

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2019-03-05

Overview:  It is an eventful day, but the capital markets are taking it in stride.  Equity markets are mixed.  Asia may have been weighed down by China's shaving its growth target and announced around CNY2 trillion (~$300 bln) in tax cuts to support the economy, though Chinese stocks edged higher. 

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FX Daily, March 01: Could the Worst be Behind China and Germany? Or Hope Springs Eternal

2019-03-01

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2019-03-01

Overview:  News that MSCI plans to substantially boost China's equity weighting in its indices and a better than expected Caixin manufacturing PMI and some easing of India-Pakistan tensions helped bolster the risk-taking appetite going into the weekend.  This lifting equity and weighing on bonds.  China's CSI 300 rose 2.2% for a 6.5% weekly gain. 

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FX Daily, February 28: Trump Walks Away from North Korea. Should Beijing Worry?

2019-02-28

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2019-02-28

Overview:  News that the US-North Korean summit ended abruptly without an agreement spurred losses in equities and gains in the Swiss franc and Japanese yen. US President Trump willingness to walk away from the talks is important in and of itself, but it also sends a warning not to go all in on a US-China trade agreement that could also sour at the last minute.

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FX Daily, February 27: Dollar Trades Heavily, While Prospects of a Softer and Later Brexit Send Sterling Higher

2019-02-27

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2019-02-27

Overview: As the North American session is about to begin, the markets await developments in the UK House of Commons where a vote is expected today on Prime Minister May's proposal to hold votes on around March 12 on the Withdrawal Bill and no deal. However, perceptions of a reduced likelihood of a no-deal exit continued to fuel sterling gains.

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FX Daily, February 26: Brexit Dilution Lifts Sterling, while Yesterday’s Equity Rally Fades, Powell Awaited

2019-02-26

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2019-02-26

Overview:  The increased likelihood that Brexit is delayed and the possibility of a second referendum is helping lift sterling.  As has been the case for most of the time since the June 2016 referendum, the prospects of a softer and/or later Brexit is understood as sterling positive.  The other key focus is US-Chinese trade. 

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FX Weekly Preview: The Week Ahead

2019-02-25

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2019-02-25

After a dismal end of 2018, investors are faring better through the first two- thirds of the Q1 19. Equity markets have recouped a good part of the late-2018 decline. Bond yields, however, have not returned to where they previously were. The tightening of financial conditions, which was both cause and effect of heightened anxiety among investors, and spooked some central bank have eased considerably.

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FX Daily, February 22: Markets Ending Week with A Whimper

2019-02-22

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2019-02-22

Overview:  The global capital markets are winding down what appears to be an inconclusive week quietly and on a mixed note.  The MSCI Asia Pacific Index is poised to snap a four-day advance but held on to a nearly 2% gain for the week.  European bourses are mostly higher, and although the weekly advance of around 0.5% may not be that impressive, Dow Jones Stoxx 600 has only fallen in one of the first eight weeks of the year for a 9.5% year-to-date...

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FX Daily, February 20: US-China Trade and Brexit Dominate Ahead of FOMC Minutes

2019-02-20

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2019-02-20

Overview:  The US dollar is narrowly mixed against the major currencies, but the strongest currency today is the Chinese yuan, following reports that US wants China to keep the yuan stable and not offset US tariffs with currency depreciation.  The second monthly decline in Japanese exports weighted on the yen.  In the UK, another Labour MP left, while there is speculation that a few Conservatives may defect today. 

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FX Daily, February 19: Investors Need Fresh Incentives

2019-02-19

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2019-02-19

Overview: Activity in the global capital markets is subdued as investors await fresh developments. New wording for the Irish backstop apparently is being drafted. US-China trade talks resume. No decision has been made on US auto tariffs, but European and Japanese officials seem to be playing down the threat. 

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