Tag Archive: U.K.

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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FX Daily, December 16: Greenback Slides Ahead of FOMC as Optimism Underpins Risk Appetites

2020-12-16

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2020-12-16

Overview:  The S&P 500 snapped a four-day downdraft helped by optimism over the progress toward fiscal stimulus and some hope that a new trade deal can still be negotiated between the UK and EU.  Europe reported better than expected PMIs.  Equities are broadly higher, as are interest rates, while the dollar slumps. 

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FX Daily, December 10: Brexit and US Stimulus are Unresolved as Attention Turns to the ECB

2020-12-10

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2020-12-10

Overview:  US threats to break-up Facebook and the stalled stimulus talks spurred profit-taking in US shares yesterday and is dampening enthusiasm today.  The MSCI Asia Pacific Index fell for the third time this week, and Europe's Dow Jones Stoxx 600 is little changed. 

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FX Daily, December 2: Euro Rally Stalls while Brexit Concerns Trip Sterling

2020-12-02

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2020-12-02

The selling pressure that drove the dollar lower yesterday has abated, and the greenback is paring yesterday's loss, though the dollar-bloc currencies are showing some resilience. EC negotiator Barnier briefed ministers that the same three issues that have bedeviled the trade talks with the UK remain unresolved (fisheries, level playing field, and a conflict resolution mechanism).

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FX Daily, November 25: Risk Appetites Stall Ahead of the US Thanksgiving Holiday

2020-11-25

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2020-11-25

The global equity rally appears to be stalling after the US markets rallied strongly yesterday. Chinese, Taiwan, Korean, and Indian indices fell, and the MSCI Asia Pacific Index appears to have posted only its second loss this month. European shares are narrowly mixed, leaving the Dow Jones Stoxx 600 little changed.

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FX Daily, November 20: US Treasury-Fed Dispute Spurs Handwringing but Immediate Market Impact was Exaggerated

2020-11-20

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2020-11-20

Overview:  News that the stimulus talks between the House Democrats and Senate Republicans was the excuse traders were looking for to extend the US equity gains yesterday, but shortly after the close, confirmation that Treasury was not going to agree to extend several Fed facilities sent stocks reeling. 

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FX Daily, November 18: Balancing Pandemic Surge with Optimism about Vaccine

2020-11-18

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2020-11-18

News that Tokyo will go to its highest alert as it faces a rising contagion snapped a 12-day rally in the Nikkei, but most bourses in the Asia Pacific region excluding Japan advanced, though Chinese equities were mixed. European equities are narrowly mixed as the Dow Jones Stoxx 600 continues to gyrate within Monday's range.

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FX Daily, November 16: Risk-On Despite Surging Pandemic

2020-11-16

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2020-11-16

EUR/CHF and USD/CHF, November 16
Despite the surging pandemic and new restriction measure, risk-appetites appear strong to start the week. Led by 2% gains in the Nikkei and Taiwan's Taiex, all of the Asia Pacific region's equity markets advanced. European markets have followed suit and the Dow Jones Stoxx 600 is knocking on last week's eight-month high.

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FX Daily, November 13: Greenback Pares this Week’s Gains while the Turkish Lira Continues to Squeeze Higher

2020-11-13

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2020-11-13

Overview: The largest bourses in the Asia Pacific region followed the US equity market lower, with the Nikkei posting its first loss in nine sessions. China, Hong Kong, and Australia moved lower as well. On the week, the MSCI Asia Pacific Index gained about 1% after rising 6.3% in the prior week.

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FX Daily, November 12: Nervous Calm in the Capital Markets

2020-11-12

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2020-11-12

There is a nervous calm in the capital markets today.  The equity rally in the Asia Pacific region stalled to end an eight-day rally, though the Nikkei's rally remains intact. 

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FX Daily, October 19: Sterling Sparkles in Dollar Setback

2020-10-19

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2020-10-19

Investors have not let the surge of the virus or uncertainty over the UK-EU talks or US fiscal stimulus to stand in their way.  Sterling is leading the major currencies higher, returning to the $1.30 area, while global equities are trading higher.

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FX Daily, October 13: Markets Look for Fresh Incentives

2020-10-13

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2020-10-13

The S&P 500 and NASDAQ gapped higher for the third consecutive session and continued to advance. The benchmarks reached their best level since early September. Hong Kong markets were closed due to a storm, but the MSCI Asia Pacific gained for the seventh consecutive session. Most markets were higher, though Taiwan and South Korea were exceptions.

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FX Daily, October 9: Animal Spirits Return

2020-10-09

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2020-10-09

Overview:  The on-again-off-again fiscal stimulus in the US is back on as the White House now supports a broad stimulus program, but not as big as the Democrats $2.2 trillion package.  It is the narrative being cited as the rebuilding of risk appetites is the wobble earlier in the week. 

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FX Daily, October 1: Hope Springs Eternal

2020-10-01

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2020-10-01

Speculation that a new round of fiscal stimulus from the US is possible is encouraging risk-taking today.  Many large Asian centers were closed for holidays today, and a technical problem prevented the Tokyo Stock Exchange from opening.

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FX Daily, September 25: Sentiment Remains Fragile Ahead of the Weekend

2020-09-25

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2020-09-25

The dramatic week is finishing on a quieter note.  The modest gains in US equities yesterday helped the Asia Pacific performance today.  Most markets but China and Hong Kong pared the weekly losses, and easing regulations in Australia spurred a rally in financials that saw its stock market close higher on the week. 

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FX Daily, September 16: Dollar Eases Ahead of the FOMC

2020-09-16

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2020-09-16

Overview:  The dollar has been sold against nearly all the world's currencies ahead of what is expected to be a dovish Federal Reserve, even if no fresh action is taken. The Scandis and Antipodean currencies are leading the majors. 

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FX Daily, September 15: The Dollar Softens Ahead of the FOMC

2020-09-15

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2020-09-15

The capital markets are relatively quiet so far today as the FOMC meeting gets underway. Equity markets in the Asia Pacific region, but Japan and Australia advanced, and the regional benchmark rose for the fourth consecutive session. European stocks are a little firmer. 

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FX Daily, August 21: PMIs Shake Investor Confidence

2020-08-21

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2020-08-21

The second disappointing Fed manufacturing survey report and an unexpected rise in weekly jobless claims helped reverse the disappointment over the FOMC minutes. Bonds and stocks rallied--not on good macroeconomic news, but the opposite, which underscores the likelihood of more support for longer.

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FX Daily, August 19: US Equities Outperform but Does Little for the Heavy Greenback

2020-08-19

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2020-08-19

EUR/CHF and USD/CHF, August 19
Overview:  The S&P 500 and NASDAQ set new all-time highs yesterday, but the continued outperformance of US equities have failed to lend the dollar much support.  It was sold to new lows for the year yesterday against the euro, sterling, the Swedish krona, and the Australian dollar. 

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