Tag Archive: #USD

FX Daily, October 2: Greenback Shows Resiliency, Stocks Don’t

2019-10-02

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2019-10-02

Shockingly poor ISM data sent shivers through the market on Tuesday and hand the S&P 500 its biggest loss in five weeks and took the shine off the greenback. The S&P 500 reached a five-day high before reversing course and cast a pall over today's activity.  All the markets were lower in Asia Pacific, with China and India closed for holidays.

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FX Daily, October 1: Dollar Jumps to Start New Quarter

2019-10-01

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2019-10-01

Overview: The US dollar is rising against nearly every currency today as global growth concerns deepen. Japan's Tankan Survey showed large manufacturers confidence is a six-year low. The Reserve Bank of Australia cut 25 bp as widely expected and kept the door open for more. The final EMU PMI ticked up from the flash, but it is still at a seven-year low.

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FX Daily, September 30: A Busy Week Begins Quietly

2019-09-30

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2019-09-30

Overview: As the quarter ends, the capital markets are mixed. Equities in Asia Pacific were heavier, except in Hong Kong and Australia, while shares were mixed, leaving the Dow Jones Stoxx 600 little changed through the European morning. US shares are trading firmer. Benchmark 10-year bond yields are 2-3 basis points higher, though Australia's bond yield was up seven basis points.

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FX Daily, September 27: Markets Limp into the Weekend with the Euro Languishing at New Lows and Sterling under Pressure

2019-09-27

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2019-09-27

Overview: Equities remain under pressures. The MSCI Asia Pacific Index lower today, though Chinese and Australian shares were firmer. It is the second consecutive week the benchmark has fallen. European equities are firmer, but not enough to offset the losses earlier this week and are set to snap a five-week advance.

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FX Daily, September 26: Greenback Remains Firm

2019-09-26

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2019-09-26

Overview: A compelling narrative for yesterday's disparate price action is lacking. A flight to safety, which is a leading interpretation, does not explain the weakness in the yen, gold, or US Treasuries. Month- and quarter-end portfolio and hedge adjustments may be at work, but the risk is that it is a black box: is difficult to verify and lends itself to misuse as a catch-all explanation.  Nevertheless, the rise in US equities yesterday helped...

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FX Daily, September 25: Risk Appetite Stymied: Dollar Recovers while Stocks Slide

2019-09-25

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2019-09-25

Overview:  Global equities and fixed income reacted to the large moves yesterday in the US when the 10-year note yield fell eight basis points, and the S&P 500 fell by 0.85%.  Investors have focused on three separate developments and two of which came from President Trump's speech at the UN.  He dismissed the likelihood of a short-term trade deal with China and was critical of the large social media platforms.

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FX Daily, September 24: UK Supreme Court Deals another Defeat to Johnson

2019-09-24

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2019-09-24

Overview: A fragile calm hangs over the capital markets today.  Equities in Asia Pacific were narrowly mixed.  Japan, China, and HK advanced. India saw some profit-taking after a two-day surge in response to the unexpected corporate tax cuts but recovered in late dealings. European shares are recovering after posting its largest loss in a month yesterday (-0.8%). US shares are trading firmer in Europe.

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FX Daily, September 23: Dreadful European Flash PMI Drags the Euro Lower

2019-09-23

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2019-09-23

Overview: The critics who claim the ECB's policy response was disproportionate got a rude shock today with the unexpected weakness revealed by the flash PMI. The euro looks to re-visit the lows set recently near $1.0925. Sentiment has also been eroded by the poor South Korean export figures. Asia Pacific equities moved lower, though Tokyo markets were closed. Indian equities, however, continue their pre-weekend surge.

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FX Daily, September 20: UK and India Provide Excitement Ahead of the Weekend

2019-09-20

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2019-09-20

Overview: A word of optimism on a Brexit deal has sent sterling to its best level in two months. Corporate tax cuts sparked a more than 5% rally in Indian stocks as the week draws to a close. The MSCI Asia Pacific Index snapped a four-day losing streak to pare this week's decline.  Europe's Dow Jones Stoxx 600 was flat for the week coming into today, and its four-week advance is at stake.

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FX Daily, September 19: Investors Looking for New Focus

2019-09-19

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2019-09-19

Overview:  Central bank activity is still very much the flavor of the day, but investors are looking for the next focus.  The Bank of Japan and the Swiss National Bank stood pat, while Indonesia cut for the third consecutive time and the Hong Kong Monetary Authority and Saudi Arabia quickly followed the Fed. Brazil cut its Selic rate yesterday by 50 bp as widely expected.

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FX Daily, September 18: FOMC Meets Amid Money Market Pressures

2019-09-18

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2019-09-18

Overview:  News that Saudi Arabia was able to restore 40%-50% of the oil capacity lost by the weekend strike coupled with the Fed's efforts to offset the squeeze in the money markets are allowing the global capital markets to trade quietly ahead of the conclusion of the FOMC meeting.  Equities are little changed with a lower bias that has been seen in the first few sessions this week.

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FX Daily, September 17: Markets Calm(er)

2019-09-17

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2019-09-17

Overview: Oil prices have stabilized after yesterday's surge. Both Brent and WTI are holding on to around $7-$8 a barrel gain. Equity markets are mixed. Some are attributing the losses in Asia Pacific outside of Japan (Nikkei rose its highest level since late April), Korea and Australia to the rise in oil prices. European shares opened lower are straddling unchanged levels.

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FX Daily, September 16: Oil Surge Pared, Markets Remain on Edge

2019-09-16

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2019-09-16

Overview: Oil prices surged in the initial reaction to the unprecedented drone attack on Saudi Arabia facilities. Saudi Arabia may be able to restore around half of the lost production in a few days. Saudi Arabia and other countries, including the US, prepared to tap strategic reserves, oil prices have seen the initial gains halved. Brent is trading near $65 after finishing last week near $60.

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FX Daily, September 13: Bonds and the Dollar Remain Heavy Ahead of the Weekend

2019-09-13

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2019-09-13

Overview: The markets are digesting ECB's actions and an easing in US-Chinese rhetoric. Next week features the FOMC meeting and three other major central banks (Japan, Switzerland, and Norway). The US equity rally that saw the S&P 500 edge closer to the record high set in late July spilled over to lift Asian markets. Chinese and Korean markets were closed for a mid-autumn holiday.

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FX Daily, September 12: Focus on the ECB, while the Dollar Slips below CNY7.09

2019-09-12

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2019-09-12

Overview: Some gestures in the US-China trade spat have given the market the reason to do what it had been doing, and that is taking on more risk. Equities are higher in Asia Pacific and opened in Europe higher before slipping. The MSCI Asia Pacific and the Dow Jones Stoxx 600 are advancing for the fourth consecutive week.

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FX Daily, September 11: Dollar is Firm as ECB is Awaited

2019-09-11

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2019-09-11

Overview: Global equities are extending their recent gains while bonds remain on the defensive.  The dollar is firm.  There is a degree of optimism that is prevailing. There are some more overtures in terms of US-Chinese trade. In Hong Kong, developers and banks led an equity rally on ideas that the political tensions may ease. South Korea reported better trade data for the first ten days of September.

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FX Daily, September 10: Turn Around Tuesday

2019-09-10

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2019-09-10

Overview: The momentum from the end of last week carried into yesterday's activity, but the momentum began fading.  Today, equities were mixed in Asia Pacific and weaker in Europe. The Dow Jones Stoxx 600 reversed lower yesterday and is slipped further today.  The S&P 500 may gap lower at the open.

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FX Daily, September 9: Market Sentiment Still Constructive

2019-09-09

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2019-09-09

Overview: The improvement of investor sentiment seen last week is carrying over into the start of the new weeks. Global equities are firm as are benchmark yields. Asia Pacific equities advanced, except in Hong Kong, where Chief Executive Lam's promise to formally withdraw the controversial extradition bill failed to deter protests.

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FX Daily, September 06: Focus Shifts to North American Jobs Before Turning Back to Europe next Week

2019-09-06

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2019-09-06

Investors hope that the world took a step away from the abyss in recent days. Developments in Hong Kong, US-China talking, a political and economic crisis in Italy appears to have been averted, and a risk of a no-deal Brexit has lessened. Asia Pacific equities closed the week on a firm note and extended the rally the third week.

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FX Daily, September 05: Brexit becomes a Dog’s Breakfast as Dollar’s Correction Continues

2019-09-05

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2019-09-05

The Dollar Index fell the most in three months yesterday and is experiencing mild follow-through selling today. With hopes that Hong Kong has turned a corner, news that in-person US-China talks will resume next month, and a no-deal Brexit is well on the way to being averted, investor risk appetites are robust today.

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