Follow us or the Bunny gets it. No
Bunny gets it

Subscribe for newsletter


Follow us in Twitter



Gold standard and monetary metals:


Subscribe for browser push notifications

Tag Archive: #USD

FX Daily, July 21: Monetary Policy Expectations are Driving Foreign Exchange

2016-07-21

by

2016-07-21

Monetary policy is said to have lost its impact on the foreign exchange market, as investors scratch their heads at the resilience of currencies with negative interest rates. Yet the price action in the action cannot be understood without recognizing the ongoing importance of monetary policy expectations.

Read More »

Effective Fed Funds and Money Markets

2016-07-21

by

2016-07-21

Fed funds have been trading firmly. There are several reasons and one of them is the shift that is taking place in the US money markets. Still the risk of a Fed hike has increased, just as speculation increases of easing in other major centers.

Read More »

FX Daily, July 20: Sterling’s Jump Slows Dollar’s Ascent

2016-07-20

by

2016-07-20

It is a bizarre turn of events. Just like the Game of Throne's Westeros is a map of the UK put on top of an inverted Ireland, so too do UK events seem to be a strange permutation of the pre-referendum views. Although sterling and interest rates have not fully recovered from the Brexit decision, equity markets have, and fear of contagion has died down.

Read More »

Great Graphic: Aussie Approaches Two-Month Uptrend

2016-07-20

by

2016-07-20

Australian dollar is the second heaviest currency this week after a key downside reversal at the end of last week. It is approaching an uptrend line near $0.7450. Many perceive an increased likelihood that the RBA eases and many are reassessing chance of a Fed hike later this year.

Read More »

FX Daily, July 19: Dollar-Bloc Tumbles, but Euro and Yen Little Changed

2016-07-19

by

2016-07-19

The US dollar is sporting a firmer profile today, but it is not the driver. Heightened speculation that Australia and New Zealand may cut interest rates next month is pushing those respective currencies more than 1% lower today.

Read More »

Dollar Bull Case Intact: It is All About the Perspective

2016-07-19

by

2016-07-19

Our bullish dollar outlook was based on divergence and we judge it to still be intact.The Dollar Index has been trading broadly sideways since March 2015, but never did more than a minimum retacement of its arlier rally. The Dollar index is at it highest level since March today.

Read More »

FX Daily, July 18: Coup in Turkey Repulsed, Risk-Appetites Return

2016-07-18

by

2016-07-18

The US dollar and the yen are trading heavy, while risk assets, including emerging markets, and the Turkish lira, have jumped. Sterling is the strongest of the majors. It is up about 0.5% (~$1.6365), helped by the opportunity of GBP23.4 bln foreign direct investment and comments from a hawkish member of the MPC suggesting not everyone is onboard necessarily for a rate cut next month.

Read More »

Squaring the Circle: Can Article 7 be Used to Force Article 50?

2016-07-18

by

2016-07-18

Article 7 would suspend the UK's EU voting rights on grounds it is not negotiating in good faith by delaying the triggering of Article 50. The U.S. debated what "is" means, now investors are trying to figure out what May means. Although sterling has stabilized, interest rate differentials have not.

Read More »

FX Weekly Preview: EMU Returns to Center Stage in the Week Ahead

2016-07-17

by

2016-07-17

Key event in Europe is not on many calendars--it is a ruling by the European Court of Justice. UK government and Tory Party stabilizing, leaving the Labour Party in disarray. US economy appears to have accelerated into the end of Q2. BOJ's meeting at the end of the month.

Read More »