Tag Archive: #USD

FX Daily, July 8: Abe’s Assassination Shocks the World

2022-07-08

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2022-07-08

News that former Prime Minister Abe was assassinated while campaigning in Japan ahead of the weekend election shocked the nation and world. The immediate market impact looks minimal. Asia Pacific equities mostly advanced.

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Johnson Resigns, but Still not Clear if He Controls the Timing

2022-07-07

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2022-07-07

Overview: The resignation of a UK prime minister makes for high political drama, but the markets hardly moved on it. Sterling, like most of the major currencies, are recovering against the dollar today.

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The Dollar Remains Bid, while Sterling Shrugs Off Johnson’s Political Woes

2022-07-06

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2022-07-06

Overview: The dollar jumped yesterday making new highs against most of the major currencies, including the euro, sterling, the dollar-bloc and the Scandis. The yen and Swiss franc held in better, but the greenback still closed firmly against the yen despite a six-basis point decline in the 10-year yield.

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The Dollar Jumps and the Euro Slips under $1.03

2022-07-05

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2022-07-05

Overview: The dollar is soaring today, and the euro is trading at new 22-year lows having traded below $1.03. Even a 50 bp hike by the Reserve Bank of Australia has failed to prevent a sharp drop in the Australian dollar.

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What Happened Today in a Few Bullet Points

2022-07-04

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2022-07-04

1. The most important thing to appreciate is that the market has moved to price not one but two cuts next year.  The first is priced into the September Fed funds futures and the second is in the Dec Fed funds futures. 

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Macro and Prices

2022-07-02

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2022-07-02

(Combining the weekend macro commentary and price action review in one note.  Check out the July monthly.) Three economic reports highlight the week ahead:  Japan's labor cash earnings at the start of the week and the US employment report and China's CPI at the end of the week.

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Stocks Hit as Central Banks Brandish Anti-Inflation Efforts

2022-06-30

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2022-06-30

Overview: Central banks are committed to combatting inflation even as the economies weaken. This is taking a toll on investor sentiment and is dragging down equities.

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Spanish Inflation Shocks

2022-06-29

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2022-06-29

Overview: The sharp sell-off in US equities yesterday, led by tech, is weighing on today’s activity. Most of the large Asia Pacific markets excluding Japan and India lost more than 1% today.

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No Turn Around Tuesday

2022-06-28

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2022-06-28

Overview: The global capital markets are calm today. Most of the large bourses in the Asia Pacific extended yesterday’s gain. Europe’s Stoxx 600 is advancing for the third consecutive session and is near two-and-a-half week highs.

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Consolidation in FX Featured

2022-06-27

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2022-06-27

Overview: The strong equity market rally seen at the end of last week is carrying into today’s activity. Most of the large markets in Asia Pacific rose by at least 1%.

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The Dollar: Don’t Get too Far Ahead of the Story

2022-06-26

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2022-06-26

The most important development in foreign exchange probably took place in the interest rate market last week. A series of disappointing US economic data and the Fed's "unconditional" commitment to rein in inflation have heightened concerns that economic weakness will limit the Fed's ability to hike rates. 

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Risk Appetites Improve Ahead of the Weekend

2022-06-24

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2022-06-24

Overview: Equities are higher and bonds lower as the week's activity winds down. Asia Pacific markets rallied, paced by more than 2% gains in Hong Kong and South Korea.

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Johnson’s Ability to Lead Tories into Victory at Risk with Today’s By-Elections

2022-06-23

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2022-06-23

Overview: Asia Pacific equities were mixed. Gains were recorded in China, Hong Kong, Australia, and India, among the large markets, while Japan was mostly flat and South Korea and Taiwan shares fell.

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Risk Appetites are Fickle

2022-06-22

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2022-06-22

Overview: Yesterday’s strong US equity gains failed to carry over into today’s session. Japanese and Australian shares fared the best among the large Asia Pacific market, with the Nikkei off less than 0.4% and the ASX off less than 0.25%.

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Equities Jump, Dollar Slips, and European Yields Drop

2022-06-21

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2022-06-21

Stocks are rallying. Nearly all the large bourses in the Asia Pacific region rose with China being the noted exception.

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US Holiday Facilitates Consolidative Tone

2022-06-20

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2022-06-20

Overview: Most equity markets in the Asia Pacific region lost ground today. China’s Shenzhen, Hong Kong, and India were notable exceptions.

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With the Central Bank Pivots Discounted, Will the Forex Market Consolidate?

2022-06-19

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2022-06-19

The dramatic moves in the money market were investors discounting the acceleration of the tightening cycle among the major economies. 

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Is a 0.3% Miss on Headline CPI Really Worth a 77 bp Rise in the December Fed Funds Yield?

2022-06-15

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2022-06-15

Overview: Better than expected Chinese data and an unscheduled ECB meeting are the highlights ahead of the North American session that features the May US retail sales report and other high frequency data before the outcome of the FOMC meeting.

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Prospects of Aggressive Tightening Sends Shock Waves through the Capital Markets

2022-06-14

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2022-06-14

Overview: The markets' evolving expectations of a more aggressive monetary policy is not limited to the Federal Reserve, where the terminal rate is now straddling the 4% area, around 100 bp above late May levels.

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Dollar Jumps, Stocks and Bonds Slide

2022-06-13

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2022-06-13

The prospect of a more aggressive Federal Reserve policy has spurred a sharp sell-off in global equities and bonds and sent the dollar sharply higher. The large Asia Pacific bourses were off mostly 2%-4%.

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