Tag Archive: U.K. Gross Domestic Product

FX Daily, October 10: Setback for the Greenback

Conflicting headlines about US-China trade whipsawed the markets in Asia, but when things settled down, perhaps, like the partial deal that has been hinted, net-net little has changed. Asian equities were mixed, with the Nikkei, China's indices, and HK gaining, while most of the others slipped lower. The 0.9% gain in the S&P 500 yesterday failed to lift European stocks, and the Dow Jones Stoxx 600 is near the week's lows.

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FX Daily, September 30: A Busy Week Begins Quietly

Overview: As the quarter ends, the capital markets are mixed. Equities in Asia Pacific were heavier, except in Hong Kong and Australia, while shares were mixed, leaving the Dow Jones Stoxx 600 little changed through the European morning. US shares are trading firmer. Benchmark 10-year bond yields are 2-3 basis points higher, though Australia's bond yield was up seven basis points.

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FX Daily, June 28: The World may Look Different Come Monday

Overview: Quarter-end positioning seems to dominate today's activity. The outcome of bilateral talks at the G20 gathering partly reflects the influence of the US President who eschews multilateral efforts as a hindrance to its sovereignty.  Equities in Asia Pacific slipped today but held on to modest gains for the week.

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FX Daily, June 10: Collective Sigh of Relief Lifts Equities, Yields, and the Dollar

Overview: A global sigh of relief that the US will not tariff all its imports from Mexico.  Equities are all higher, and the weekend demonstrations in Hong Kong over a bill allowing extraditions to the mainland for the first time did not deter investors from bidding up the Hang Seng over 2.3%, the most this year.  European equities are following suit. 

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FX Daily, May 25: US Dollar Loses Momentum Ahead of the Weekend

The euro and sterling were sold through yesterday's lows in Asia, but rebounded in Europe, with the help of mildly constructive data in the form of the German IFO and details of UK Q1 GDP. The IFO climate measure matched the April reading and thereby snapped a five-month slide. The expectations component slipped, but the current assessment improved.

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Policy normalisation may be delayed in Europe

Taking stock of recent dovish shifts in European central banks’ communication and reaffirming our broadly constructive macro outlook.The European Central Bank (ECB) does not seem overly concerned about the soft patch in the economy in Q1 and appears willing to collect more data before they start discussing the timing and modalities of the next policy steps. We expect the ECB to hint at an imminent end to asset purchases at its June meeting, but to...

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FX Daily, April 27: Dollar Puts Finishing Touches on Best Week Since November 2016

The US dollar's recent gains have been extended, and it is having one of its best weeks since November 2016. The Dollar Index is up 1.7% for the week, as US session is about to start. Though it took this week's gains to change market's narrative, the fact of the matter, as we have pointed out is that April is the third consecutive month in which the Dollar Index fell in only one week. That translates into rising 10 of the past 13 weeks.

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FX Daily, March 29: Bonds and Stocks are Firm, While the Greenback Consolidates Upticks

The choppy US equity session yesterday, ultimately ending with modest losses as the tech sector remained under pressure, has been shrugged off in Asia and Europe, where modest gains have been seen. The dollar is little changed after yesterday's gains, and bonds are mostly firmer.

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FX Daily, February 22: All Eyes on Equities

The dramatic reversal of US shares yesterday in the last hour of trading has once again pulled the proverbial rug beneath the feet of investors. The turn down, moreover, occurred near important technical levels, seemingly adding to the significance. Global equities have followed suit.

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FX Daily, January 26: Trump-Inspired Dollar Short Squeeze Fades Quickly

It was dramatic. Following the BOJ and ECB's rather mild rebuke of dollar's depreciation, US President Trump cautioned that his Treasury Secretary comments were taken out of context, and in ant event, he, the President ultimately favored a strong dollar. The dollar, which had continued fall after Draghi's post-ECB meeting comments, shot higher in the US afternoon in response to Trump's comments.

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FX Daily, October 25: Sterling and Aussie Interrupt the Waiting Game

Most participants seemed comfortable marking time ahead of tomorrow's ECB meeting, and an announcement President Trump's nominations to the Federal Reserve. However, softer than expected Australian Q3 CPI and a stronger than expected UK Q3 GDP injected fresh incentives. Australia reported headline CPI rose 0.6% in Q3.

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FX Daily, September 29: Dollar’s Gains Pared, but Set to Snap Six Month Losing Streak Against the Euro

Supported by a sharp rise in interest rates and ideas of tax reform, the US dollar is closing one of its best months of the year. The Dollar Index is snapping a six-month decline, and the euro's monthly advance since February is ending. This month, the US 10-year yield has risen 18 bp, and the two-year yield has risen 13 bp. It is the biggest increase since last November.

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FX Daily, August 24: Greenback Firmer in Becalmed Markets

The US dollar is enjoying a firmer tone in quiet. Sterling is stabilizing after grinding down to its lowest level since late June. The Mexican peso, which had dropped in thin trading in Asia and Europe yesterday following Trump's threat to exit NAFTA and force Congress to fund the Wall or face a government shutdown recovered fully and is now slightly higher on the week.

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FX Daily, July 26: Quiet Fed Day without Yellen

By definition, the Federal Reserve Open Market Committee meeting is the highlight of the day. Without a press conference, and following last month's rate hike, there is practically no chance of a new policy initiative either on the balance sheet or the Fed funds target.

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FX Daily, June 30: Greenback Stabilizes

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, May 25: Euro Strength more than Dollar Weakness

The Dollar Index is heavy, just above the lows set earlier this week set near 96.80. However, this exaggerates the dollar's weakness because the weight of the euro and currencies that shadow it, like the Swiss franc and Swedish krona. As the North American session is about to start, the dollar is higher against the dollar-bloc currencies and the Japanese yen.

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FX Daily, April 28: Markets Limp into Month End

Equity markets are stalling into the end of the month. MSCI Asia-Pacific Index is snapping a six-day advance, and the week's gain was sufficient to extend the advancing streak for the fourth consecutive month. The Dow Jones Stoxx 600 is trading off for the second consecutive session, after rallying for six consecutive sessions.

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Who’s Playing The Long Game–and What’s Their Game Plan?

When we speak of The Long Game, we speak of national/alliance policies that continue on regardless of what political party or individual is in office. The Long Game is always about the basics of national survival: control of and access to resources, and jockeying to diminish the power and influence of potential adversaries while strengthening one's own power and influence.

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FX Daily, March 31: Greenback Finishing Weak Quarter in Mixed Fashion

The US dollar fell against all the major currencies in the first three months of 2017. The weakness initially seemed to be a correction to the rally, which began before the US election last year. The dollar recovered in February, in anticipation of a hawkish Fed in March.

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