Tag Archive: USD/CHF

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

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

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, February 15: Sterling Continues to Run Higher and US Winter Storm Gives Oil Another Boost

US and Greater Chinese markets are closed today, but the markets are moving. Equities are bid. The Nikkei led the Asia Pacific region with a 2% gain and pushed above 30000 for the first time since 1990.

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FX Daily, January 28: A Sea of Red Gives the Dollar a Bid

The steepest loss in US equities since last October is rippling through the capital markets in the form of de-risking.  The rout is not over, and the S&P 500 is poised to gap lower.   Many of the largest markets in the Asia Pacific region were off around 2%. 

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FX Daily, January 20: The Dollar Slips to New Lows against Sterling and the Mexican Peso

Global equities are moving higher today. Led by continued strong buying of Hong Kong shares, the MSCI Asia Pacific Index rose to new highs. The Hang Seng is up 6% this year and is approaching the 2019 record high. Australia's shares set a new record today. Japan and Taiwan bucked the trend.

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FX Daily, January 19: Even When She Speaks Softly, She’s Yellen

Overview: The animal spirits are on the march today.  Equities are mostly higher, peripheral European bonds are firm, and the dollar is mostly softer. After posting the first back-to-back decline this year, the MSCI Asia Pacific Index bounced back today, led by a 2.7% gain in Hong Kong (20-month high) and a 2.6% rise in South Korea's Kospi. 

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FX Daily, January 11: Greenback Extends Recovery

Julius Ceasar is said to have "crossed the Rubicon" on January 10, 49 BCE, taking the 13th Legion into Rome, defying orders from the Senate, and precipitating the Roman Civil Wat that marked the end of the republic and the birth of the empire.

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FX Daily, January 08: Can the Dollar Find Traction Even if the Employment Data Disappoint?

The global equity rally picked up this week as it closed in 2019. The MSCI Asia Pacific Index gained today and is up in nine of the past 10 sessions. It has fallen only in one week since the end of October. South Korea's Kospi led today's advance with a nearly 4% rally on the back of talks that were later played down between Hyundai and Apple. 

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FX Daily, December 03: Euro Rally Stalls while Brexit Concerns Trip Sterling

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

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 11: Reduced Risk of Negative Policy Rates Lifts Sterling and the Kiwi

Overview:  Investors are trying to figure out the impact of the likelihood of a vaccine. One thing that has happened is that the market perceives less chance that the UK or New Zealand will adopt negative rates, and their respective currencies are adjusting higher.  Meanwhile, the equity rally is continuing in Asia and Europe.

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FX Daily, November 6: A Pause that Refreshens?

Investors have piled into risk assets this week, seemingly undeterred by the US elections' lack of a clear outcome. The coronavirus is still surging, and a new complication has emerged. A mutation of the virus, originating in minks (Denmark), could pose a challenge in developing a vaccine. MSCI Asia Pacific Index rose for the fifth consecutive session today to end its best week since April.

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FX Daily, November 5: The Dollar Slides and the Yuan Jumps

Overview: The markets did not wait for the final vote count and took stocks and bonds higher while pushing the greenback lower. While it appears Biden will be the next US President, investors seemed to like the fact that his agenda will be checked by a Senate that may remain in Republican hands.  Stocks are on a tear. 

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FX Daily, October 27: Markets Take Collective Breath and Beijing Tweaks Fixing Mechanism

The surging pandemic sapped the risk-taking appetites as some investors hunker down for what could be a volatile period ahead.  The S&P 500 lost nearly 3% at its lows before rebounding 1% in late dealings.

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FX Daily, October 08: Markets Catch Collective Breath

The S&P 500 and NASDAQ closed at their highest levels in around a month yesterday, recouping Tuesday's presidential tweet-driven drop. We thought the market overreacted to the end of the fiscal talks as many had already recognized that a stimulus agreement was unlikely before the election, but the near round-trip seen in stocks and bonds was surprising.

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FX Daily, October 07: The Day After

President Trump's tweet announced that negotiations with the House Democrat leadership had collapsed, and there will be no further talks until after the election. Many economists had been removing it from their Q4 GDP projections, but the market was caught wrongfooted. Risk came off.

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FX Daily, October 05: Monday’s Dollar Blues

New actions to contain the virus are being taken in the US and Europe, but investors are looking past it and taking equities and risk assets, in general, higher to start the new week. MSCI Asia Pacific recouped most of last week's 0.7% loss with gains of move than 1% in Japan, Hong Kong, South Korea, and Australia.

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FX Daily, September 24: Darkest Before Dawn

The two recent market developments, push lower in stocks, and higher in the dollar is continuing. Tuesday's gains in the S&P 500 and NASDAQ were unwound on Wednesday and this is helping drag global markets lower. The MSCI Asia Pacific Index fell for the fourth consecutive session today and many markets (India, Shenzhen, Taiwan, and Korea) fell more than 2% and most others were off more than 1%.

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FX Daily, September 14: UK Presses Ahead, China Strikes Out at German Pork Producers, and Moody’s Weighs on Turkey

A flurry of deals, including the still-evolving Oracle-TikTok tie-up, helped lift equity markets in the Asia Pacific region. South Korea's Kospi, and Indonesia, which had been battered last week, led the advance. The MSCI Asia Pacific Index rose for the third consecutive sessions. European bourses are little changed while US stocks are firmer.

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FX Daily, August 28: Powell and Abe Drive Markets

After a confused and volatile reaction to the Federal Reserve's formal adoption of an average inflation target, it took Asian and European traders to embrace the signal and take the dollar lower. It is falling against nearly all the currencies and has slumped to new lows for the year against sterling and the Australian dollar.

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