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Tag Archive: U.K.

Don’t Make a Fetish Out of What may be a Minor Change in the Pace of ECB Bond Buying

2021-09-09

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2021-09-09

Overview: Yesterday's retreat in US indices was part of and helped further this bout of profit-taking. The MSCI Asia Pacific Index ended an eight-day advance yesterday and fell further today. Japanese indices, which had set multiyear highs, fell for the first time in nine sessions. Hong Kong led the regional slide with a 2.3% decline as China's crackdown on the gaming industry continued. 

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The Greenback Continues to Claw Back Recent Losses

2021-09-08

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2021-09-08

Overview:  The US dollar continues to pare its recent losses and is firm against most major currencies in what has the feel of a risk-off day.  The other funding currencies, yen and Swiss franc, are steady, while the euro is heavy but holding up better than the Scandis and dollar-bloc currencies.  Emerging market currencies are also lower, and the JP Morgan EM FX index is off for the third consecutive session. 

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Consolidative Mood Grips Markets

2021-08-18

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2021-08-18

Overview:  The dollar is consolidating yesterday's advance and is confined to fairly narrow ranges in quiet turnover.  Most of the major currencies are within 0.1% of yesterday's close near midday in Europe. The $1.1700-level held in the euro. 

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FX Daily, August 17: Antipodeans and Sterling Bear Brunt of Greenback’s Gains

2021-08-17

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2021-08-17

Overview:  Concern about the economic impact of the virus and new efforts by China to curb "unfair" competition among online companies has triggered a dramatic response by investors.  A lockdown in New Zealand and the Reserve Bank of Australia signaling it will respond if the economic fallout increases sent the Antipodean currencies sharply lower.

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Markets Look for Direction, Currencies in Narrow Ranges

2021-08-12

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2021-08-12

Overview: The global capital markets are subdued today as investors wrestle with the rising virus, the shifting stance of several central banks, and a more tense geopolitical backdrop.  Equity markets are struggling today. 

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Gold’s Flash Crash and Limited Follow-Through Greenback Gains

2021-08-09

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2021-08-09

Overview:  A flash crash saw gold drop more than $70 an ounce in early Asia. Silver was dragged lower too.  The precious metals have stabilized at lower levels, but it signals a rough adjustment to a higher interest rate environment as a hawkish BOE and strong US employment data suggest peak monetary stimulus is at hand. 

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FX Daily, July 22: Enguard Lagarde

2021-07-22

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2021-07-22

Overview: The rally in US shares yesterday, ostensibly fueled by strong earnings reports, is helping to encourage risk appetites today.  The MSCI Asia Pacific Index is posting its biggest gain in around two weeks, though Japan's markets are closed today and tomorrow.  The Dow Jones Stoxx 600 is building on yesterday's rally, and with today's ~0.8% gain, it is up on the week.

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FX Daily, July 21: Did Japan Deliver a Fait Accompli to the US?

2021-07-21

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2021-07-21

Overview:  The biggest rally in US equities in four months has helped stabilize global shares today.  In the Asia Pacific region, Japan, China, and Australian markets advanced.  Led by information technology and consumer discretionary sectors, Europe's Dow Jones Stoxx 600 is up around 1.35% near the middle of the session. 

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FX Daily, July 16: BOJ Tweaks Forecasts

2021-07-16

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2021-07-16

The markets head into the weekend with little fanfare. Most large equity markets in the Asia Pacific region slipped earlier today. Hong Kong, which will be exempt from the need to secure mainland's cybersecurity approval for foreign IPOs, and Australia were notable exceptions. European bourses are edging higher, while US futures are oscillating around unchanged levels.

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FX Daily, July 15: Strong Gains in US CPI and PPI Don’t Stop the Bond Market Rally

2021-07-15

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2021-07-15

Strong inflation prints this week have not prevented the long-term US interest rates from tumbling. The 10-year yield is about 10 bp lower than where it closed on Tuesday after the lackluster 30-year auction. The 30-year yield itself is 11 bp lower.

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FX Daily, July 14: RBNZ Moves Ahead of the Queue, Will the Bank of Canada Maintain its Place?

2021-07-14

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2021-07-14

The Reserve Bank of New Zealand jumped to the front of the queue of central banks adjusting monetary policy by announcing the end of its long-term asset purchases. New Zealand's s 10-year benchmark yield jumped seven basis points, and the Kiwi is up almost 1%, to lead the move against the greenback today.

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FX Daily, July 13: Headline US CPI may Decline for the First Time in a Year

2021-07-13

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2021-07-13

New record highs in the US S&P 500 and NASDAQ coupled with China allowing Tencent to acquire a search engine helped lift Asia Pacific equities. It is the first back-to-back by MSCI's regional index for more than two weeks. Australia's market was a notable exception.

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FX Daily, June 22: Turn Around Tuesday or Dollar Rally Resumes?

2021-06-22

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2021-06-22

Firming long-term US yields have lent the dollar support after trading heavily yesterday. The greenback is around 0.15%-0.50% higher against the major currencies. The Japanese yen and Canadian dollar are among the more resilient, and the Australian dollar and sterling among the heaviest.

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FX Daily, June 18: Markets Quiet Ahead of Triple Witching

2021-06-18

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2021-06-18

After some dramatic moves over in the immediate post-Fed period, the markets have quieted. The kind of volatility that is sometimes associated with triple witching expirations in the US may have already taken place. Asia Pacific equities were mixed, but the MSCI benchmark finished with its second consecutive weekly decline. 

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FX Daily, June 16: Will the Fed Talk the Talk?

2021-06-16

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2021-06-16

With the outcome of the FOMC meeting awaited, the dollar is narrowly mixed in quiet turnover. The Scandis are the weakest (~-0.3%) among the majors, while the Antipodeans are the strongest (~+0.25%). JP Morgan's Emerging Market Currency Index is snapping a three-day decline

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FX Daily, June 11: US Yields Stabilize After Falling to Three-Month Lows

2021-06-11

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2021-06-11

The 10-year US Treasury yield steadied after reaching a three-month low near 1.43%, despite the US CPI rising more than expected to 5% year-over-year. On the week, the decline of around a dozen basis points would be the largest in a year. Australia, New Zealand, and Italy benchmark yields have seen a bigger decline this week.

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FX Daily, June 10: ECB Meeting and US CPI: Transitory Impact

2021-06-10

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2021-06-10

The ECB meeting and the US May CPI report is at hand. The US dollar is consolidating at a higher level against most of the major currencies. Softer than expected, inflation readings are weighing on the Scandis, which are bearing the brunt. The US 10-year yield closed below 1.50% for the first time in three months yesterday, and this may have helped underpin the Japanese yen.

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FX Daily, June 08: Marking Time ahead of the Week’s Big Events

2021-06-08

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2021-06-08

The capital markets appear to be in a holding pattern ahead of this week's big events, including the US CPI and the ECB meeting. Equities are little changed but with a heavier bias evident. Most of the large bourses in the Asia Pacific region were lower, except Australia, which eked out a small gain.

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FX Daily, June 07: The Greenback Steadies after Retreating on the Jobs Data

2021-06-07

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2021-06-07

After falling to 1.55% after the US employment data, which, while mixing expectations, could hardly be considered weak, the US 10-year yield has come back firmer today (1.58%) This may be lending the greenback a better tone. Equity markets are quiet. Most markets in the Asia Pacific region edged higher.

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FX Daily, June 02: The Dollar Snaps Back

2021-06-02

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2021-06-02

The US dollar is enjoying broad, even if not large, gains today following yesterday's recovery from three-year lows against sterling and four-year lows against the Canadian dollar. The greenback is firmer against all the major currencies.

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