Tag Archive: #USD

Dollar Bull Case Intact: It is All About the Perspective

2016-07-19

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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.

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

2016-07-18

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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.

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

2016-07-18

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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.

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

2016-07-17

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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.

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