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Tag Archive: U.K.

FX Daily, May 28: The Yuan Extends Gains, While Sterling’s First Close above $1.42 in Three Years Goes for Nought

2021-05-28

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2021-05-28

The recovery of the US 10-year yield, so it is flat on the week near 1.61% coupled with month-end demand, is helping the US dollar firm. While the yen is bearing the burden on the week, with a 0.8% loss, the Antipodeans are leading the downside on the day.

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FX Daily, May 18: Risk Appetites Return Bigly

2021-05-18

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2021-05-18

In Asia, equities markets rallied strongly, led by the more than 5% gain in Taiwan, the most in over a year as Monday's 3% drop was more than overcome. The Nikkei gained more than 2% despite the deeper than expected contraction in Q1 GDP. Hong Kong, South Korea, and India also rose more than a 1% gain as tech came roaring back.

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FX Daily, May 17: US and Europe may Announce Tariff Truce

2021-05-17

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2021-05-17

There are two general developments as the busy week gets underway. First, despite accelerated price readings in the US (CPI, PPI, import prices, and University of Michigan survey), US rates are soft. The 10-year yield is near 1.61% after rising to 1.70% after the CPI surprise last week.

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FX Daily, May 14: Softer Yields = Softer Dollar

2021-05-14

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2021-05-14

The surge in consumer prices reported on Wednesday saw rates jump and the dollar push higher. Stronger than expected producer prices yesterday, and news of wage increases (average 10%) at Mcdonalds and for 75,000 people Amazon wants to hire, saw rates ease and the dollar's upside momentum stall.

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FX Daily, May 12: The Dollar Stabilizes but Stocks, Not So Much

2021-05-12

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2021-05-12

The markets remain on edge. Asia Pacific and US equities have yet to find stable footing, and inflation fears are elevated. The foreign exchange market has turned quiet as the dollar consolidates its recent losses.

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FX Daily, May 11: Stocks Slide but Little Demand for Safe Havens

2021-05-11

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2021-05-11

The sell-off in US shares yesterday has triggered sharp global losses today, and there is no flight into fixed income as benchmark yields are higher across the board. Nor is the dollar serving as much as a safe haven. It is mostly softer against the major currencies.

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FX Daily, May 10: The Dollar Remains on the Defensive

2021-05-10

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2021-05-10

Last week's cyberattack on the largest US gasoline pipeline continues to lift oil and gasoline prices. The June gasoline futures gapped higher to extend last week's 2.4% gain but has subsequently moved lower to enter the gap. 

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FX Daily, April 26: Big Week Begins Quietly, with the Greenback Still Under Pressure

2021-04-26

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2021-04-26

Overview: What promises to be a notable week has begun off quietly: the US, EMU, and South Korea report Q1 GDP.   The eurozone also provides its first estimate of April inflation.  Corporate earnings feature tech and financial firms.  Equities are mostly firmer in the Asia Pacific region and Europe.

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FX Daily, April 20: Market has Second Thoughts about Timing of First Fed Hike

2021-04-20

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2021-04-20

Overview:  Even as US yields edge higher, the dollar struggles. With the 10-year Treasury yields now at 1.62%, nine basis points above last week's lows, the greenback has turned mixed against the major currencies. After briefly slipping below JPY108, the dollar has recovered to around JPY108.55. 

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FX Daily, March 16: Equities Firm, but Markets Tread Gingerly

2021-03-16

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2021-03-16

Overview: Yesterday's new record highs in the S&P 500 and Dow Jones Industrial helped set the tone for today's advance in the Asia Pacific region and Europe. The MSCI Asia Pacific Index snapped a two-day decline, with other major markets rising today. 

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FX Daily, March 4: OPEC+ and Powell are Awaited

2021-03-04

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2021-03-04

Overview:  Equities are under pressure following yesterday's sharp losses in the US.  The MSCI Asia Pacific Index suffered its biggest decline of the week today as Japanese, Chinese, and Hong Kong benchmarks slid by more than 2%.  The Dow Jones Stoxx 600 Index in Europe is buckling under the pressure and is posting its first decline of the week. 

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FX Daily, February 24: Equities Try to Stabilize and Low Short-Term Rates Help Keep the Dollar on the Defensive

2021-02-24

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2021-02-24

Overview:  The sharp recovery in US shares yesterday that saw the S&P 500 snap a five-day slide failed to carry into Asia Pacific trading earlier today.  All the markets fell save India and Singapore.  Losses were led by a 3% drop in Hong Kong as the first increase in the stamp duty (financial transaction tax) since 1993 was announced (0.13% from 0.10%). 

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FX Daily, February 23: Dramatic Market Adjustment Continues

2021-02-23

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2021-02-23

Overview:  Rising rates continue to spur a rotation and retreat in stocks.  Yesterday the NASDAQ sold-off by nearly 2.5% while the Dow Industrials eked out a minor gain.  Equities are mostly higher in the Asia Pacific region while Japanese markets were on holiday. 

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FX Daily, February 12: Animal Spirits Start the Weekend Early

2021-02-12

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2021-02-12

Profit-taking weighs on equity markets, and the dollar is trading higher ahead of the weekend. Most Asia Pacific markets are still closed for the holiday, but Victoria's snap lockdown dragged Australian shares lower.

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FX Daily, February 05: Position Squaring Weighs on the Dollar Ahead of the Jobs Report

2021-02-05

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2021-02-05

Overview:  While equities continue to march higher, the dollar is softer amid position squaring ahead of the US jobs data.  Gold has stabilized after yesterday's shellacking.  Estimates for US nonfarm payrolls appear to have been creeping higher, encouraged by the ADP, PMI, and weekly initial jobless claims.

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FX Daily, January 25: A Subdued Start to a Big Week

2021-01-25

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2021-01-25

What promises to be an eventful week has begun off on a mostly subdued note. Asia Pacific equities moved higher, again led by Hong Kong and ostensibly mainland buying. The Hang Seng rose 2.4% to bring this year's gain to 10.75%. South Korea's Kospi also increased by more than 2%, and, so far this month, it is up almost 11.7%. 

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FX Daily, January 22: Faltering Friday

2021-01-22

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2021-01-22

Fear that social restrictions may have to be broadened and extended is helping spur a wave of profit-taking and de-risking, which has also been encouraged by disappointingly high-frequency data. The equity rally seemed to falter a bit in the US, as the S&P 500 eked out a minor 0.03% gain yesterday.

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FX Daily, January 18: US is on Holiday, but the Dollar has Legs

2021-01-18

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2021-01-18

Overview: The new week has begun like last week ended.  Equities are a bit heavy.  The MSCI Asia Pacific Index fell for the second session, its first back-to-back loss since before Christmas.  China and Hong Kong were the notable exceptions, perhaps helped by stronger than expected GDP. 

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FX Daily, January 15: The Greenback is Finishing the Week with a Firm Tone

2021-01-15

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2021-01-15

The US dollar is firm against most of the major and emerging market currencies today. Among the majors, the Japanese yen and Swiss franc are resilient. For the week, sterling and the yen appear poised to eke out small gains, while the Scandi's are the weakest performers with around a 1% decline.

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FX Daily, January 13: PBOC Sends Signal as Market Looks Past Impeachment Vote

2021-01-13

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2021-01-13

The US dollar is regaining ground lost in yesterday's setback against the major currencies. Sterling is the notable exception. It was toying with the $1.37 area, perhaps helped by the Governor of the Bank of England signal that there still are hurdles to adopting negative interest rates, which the futures market is still discounting for as soon as midyear.

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