Tag Archive: $JPY

FX Daily, January 24: Poor EMU PMI Compounds ECB’s Challenge

Overview:  The eurozone's preliminary composite PMI for January fell to its lowest level since July 2013.  It reinforces expectations for a dovish Draghi press conference and saw the euro unwind yesterday's gains.  The US dollar is firmer against all the major currencies. 

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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 22: Dollar Consolidates and Equity Rally Stalls

The US dollar is firmer against most major and emerging market currencies. The yen is a notable exception, and it is firmer, but well within recent ranges. The dollar-bloc currencies and the Norwegian krona are the weakest of the majors as a setback in equities and oil reflects a diminished risk appetite.

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FX Daily, January 21: Chinese Data and UK Brexit Start New Week

Overview: Mixed data from China and the anticipation of Prime Minister May's "Plan B" are the main talking points, while US stock and bond markets are closed today.  Asia Pacific equities were higher, while European markets have failed to follow suit.  Benchmark 10-year bond yields are mostly softer, with the on-the-run Japanese Government Bond yield dipping back into negative territory.

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FX Weekly Preview: Things to Watch in the Week Ahead

"The sky is falling. The sky is falling," they cried, as equities plunged in December. It is signaling a recession, we were told. Instead, global equities have begun the year with a strong advance. The S&P 500 gapped higher ahead of the weekend, extending this year's rally to about 14%.

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FX Daily, January 18: Markets Finishing Week on Positive Note

Sentiment has improved since the volatility last month spooked investors and, perhaps, some policymakers. Global equities are rallying. The Shanghai Composite and the Nikkei are at their best levels in almost a month, while the Dow Jones Stoxx 600 is at its best level since early December, gapping above a downtrend in place since late last September.

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FX Daily, January 17: Risk Assets Underperform as Investors Await Fresh Developments

The capital markets remain relatively subdued as fresh trading incentives are awaited, including US corporate earnings. Some of the enthusiasm for risk-assets has diminished. The MSCI Emerging Markets Index has stalled after trading at six-week highs yesterday, though most bourses in Asia were higher, but the Nikkei (Topix gained), China, and Singapore.

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FX Daily, January 16: Markets are Eerily Calm

Overview: There is an eerie calm over in the capital market through the European morning today despite some ostensibly worrisome developments.  While many, like ourselves, expect UK Prime Minister May to survive a vote of confidence, it hardly clarifies the outlook. 

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FX Daily, January 15: New Phase Begins with UK Vote

Several of the equity benchmarks are flirting with six-week highs, including MSCI Asia Pacific Index and the Emerging Markets Index. The Dow Jones Stoxx 600 is trying to extend its advancing streak for a third week, something not done since July.

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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, January 11: Trade Optimism and the Recovery in Oil Boosts Risk Appetites

Overview:  Optimism on trade talks between the US and China coupled with the biggest rally in WTI in two years (11%+) have helped keep the equity market recovery intact. The MSCI Asia Pacific Index rose today, the eighth time in the past ten sessions, while the Dow Jones Stoxx 600 in Europe is closing in on its second consecutive weekly advance. 

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FX Daily, January 10: Equity Bounce Stalls while the Greenback Steadies at Lower Levels

Equities, bonds and the dollar are consolidating the moves seen earlier this week. This means equities are trading heavy and bonds firmer. The euro is paring gains that carried it to its best level (~$1.1570) since mid-October.  After stalling near JPY109 in the last two sessions, the greenback slumped to almost JPY107.75 before finding a better bid. 

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FX Daily, January 09: Equities Continue Recovery, Greenback Remains Heavy

Overview:  Global equities have extended the New Year rally. The MSCI Asia Pacific Index advanced for the fifth consecutive session and the 10th in the past 11.  The Dow Jones Stoxx 600 in Europe is rising for the second consecutive session, something it has managed to do only one other time in the past month.  The S&P 500 is off to one of its best starts in years. 

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FX Daily, January 8: Dollar Steadies, but Weakly for Turn-Around Tuesday

Overview: The global capital markets remain calm after the surge in volatility seen over the last couple of weeks. Asian equities were mixed, with the Japanese, Australia and Indian shares gaining, but other large regional markets, like China, South Korea, and Taiwan fell. European equities are firmer. Benchmark bond have edged higher. 

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FX Daily, January 07: Recovery Falters in Europe

Overview:  The combination of robust US jobs and wage growth, more comforting words from Powell and a strong rally US stocks before the weekend helped lift Asian markets today and underpinned risk-taking appetites.  However, renewed protests in France (and Hungary) coupled with weak German factory orders have prevented European bourses from fully participating in the equity recovery. 

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Apple, China, Yen, and US Jobs: Welcome to 2019

The New Year is off to an auspicious start.  The Japanese yen, the third most actively traded currency behind the dollar and euro, got caught in a vortex of a retail short squeeze, algos, and who knows what else.  The US dollar plunged from around JPY109 to a slightly below JPY105 in a few minutes a little more than an hour after US markets closed yesterday.  

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A Word on Q3 COFER-It Might not be What You Think

The IMF offers the most authoritative report on central bank reserves on a quarterly basis with a quarter lag.  The report, the Currency Composition of Official Foreign Exchange Reserves (COFER), covering Q318 has been released.  It may be have been overlooked during the holidays, but if and when the pundits see it, the leading takeaway is that the dollar's share of global reserves fell below 62% for the first time five years.

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Week Winding Down on Firm Note, but Wild Ride may Not Be Over

The biggest reversal in the S&P 500 since 2010, allowing it to string the biggest two-day rally in three years helped lift Asian and European shares today. All the Asia-Pacific equity markets advanced today but Japan, where the strength of the yen saw the Nikkei and Topix buck the move. European equities.

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Forex Forensics: The Case of the Yen

Over the past five sessions, the yen is the strongest of the major currencies, appreciating about 1.7% against the US dollar, eclipsing the Swedish krona, which rallied strongly today after the Riksbank's surprise rate hike.  Given the sell-off in equities and the decline in markets, the yen's strength is not surprising. 

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FX Daily, December 21: Markets Stumble into the Weekend

Overview: There is little reprieve from the equity meltdown ahead of the weekend. Major markets in the Asia-Pacific region, including Japan, China, India, and Australia pushed lower. The MSCI index of the region is near 15-month lows. The Dow Jones Stoxx 600 is off about 0.6% near midday in London to make new two-year lows. US shares are also trading lower in Europe.

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