Tag Archive: #USD

FX Daily, November 20: German Political Impasse Roils Euro…Briefly

2017-11-20

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2017-11-20

News that the attempt to forge a four-party coalition in Germany collapsed Sunday saw the euro marked down in early Asian activity. The euro fell to nearly $1.1720 in the immediate response to the news, stabilized before turning higher in early European turnover. It quickly recovered and poked through $1.1800. The pre-weekend high was seen near $1.1820.

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FX Weekly Preview: Another Week that is Not about the Data

2017-11-20

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2017-11-20

The contours of the investment climate are unlikely to change based on next week's economic data from the US, Japan, or Europe. The state of the major economies continues to be well understood by investors. Growth in the US, EU, and Japan remains solid, and if anything above trend, as the year winds down.

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FX Daily, November 16: Euro Extends Pullback

2017-11-16

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2017-11-16

After rising to its best level since October 20, the euro reversed direction yesterday and has extended its pullback today. The unexpected tick up in US core CPI and better than expected retail sales may have helped spur the euro losses after three cent run-up over the past several sessions. There bearish candlestick (shooting star) leaves the late euro longs in weak hands.

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FX Daily, November 15: Dollar Slides

2017-11-15

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2017-11-15

The euro and yen are extending their gains, casting a pall over the US dollar. The euro is extending its advance into a sixth consecutive session, which is the longest streak since May. It is approaching last month's highs in the $1.1860-$1.1880 area. As was the case yesterday, a consolidative tone in Asia was followed by strong buying in the European morning. There does not appear to be a fresh fundamental driver.

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FX Daily, November 14: Euro Rides High After German GDP

2017-11-14

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2017-11-14

Sterling is trading in the lower end of yesterday's range and has been confined to about a quarter a cent on either side of $1.31. On the other hand, the euro has pushed a bit through GBP0.8950 to reach its best level since October 26. Sweden also reported softer than expected October inflation.

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FX Daily, November 13: Sterling Trounced by Growing Political Challenges

2017-11-13

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2017-11-13

The US dollar has begun the new week on firm footing, without the help of either higher interest rates or increased confidence that Congress will agree on a tax plan. Indeed, over the weekend the Chair of the House Ways and Means Committee was explicit that the Senate plan to repeal the federal tax break for state and local taxes will not find support in the House of Representative.

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FX Weekly Preview: Week Ahead Data and Policy

2017-11-13

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2017-11-13

There seems to be a broad consensus on the trajectory of policy in the remaining weeks of the year. Barring a major shock or surprise the Federal Reserve will hike rates next month. The ECB's course is set until at least the middle of next year when the current policy will begin to be debated in earnest.

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FX Weekly Preview: The Week of Digestion

2017-11-06

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2017-11-06

Quiet week ahead. RBA and RBNZ policy meetings; no change is expected. US tax reform and the newest Fed governor, Quarles speaks. Q3 data renders September data too old to matter much.

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FX Daily, November 03: Dollar Firms Ahead of What is Expected to Be Strong US Jobs Data

2017-11-03

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2017-11-03

The US dollar is firm but is not going anywhere quickly. The lack of fresh interest rate support and uncertainty over the US tax proposals, which the Brady, the Chair of the House Ways and Means Committee hopes to have a revised version out after the weekend so the committee work can begin on Monday.

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FX Daily, November 02: Dollar Pulls Back in Asia

2017-11-02

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2017-11-02

We suggested the market was at crossroads. It is still not clear if the dollar's breakout, supported by higher yields is real or simply the fraying of ranges. Asia has pushed the dollar broadly lower. While the greenback finished the North American session above JPY114.00 for the first time since July, the fact that the US 10-year yield could not push back above the 2.40% level, does not help confidence.

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Wozniak and Thiel Fuel Bitcoin-Gold Debate: Gold Comes Out On Top

2017-11-01

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2017-11-01

Bitcoin
Gold versus bitcoin debate makes further headlines as tech experts weigh in. Peter Thiel tells Saudi conference he believes bitcoin is underestimated and compares to gold. Steve Wozniak tells Money 20/20 that bitcoin is a better standard of value than gold and U.S. dollar. Both men recognise that the US dollar has little value and there are worthy competitors to its crown as reserve currency. Gold continues to hold its value and has multiple uses,...

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FX Daily, October 31: Month-End Leaves Market at Crossroads

2017-10-31

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2017-10-31

Global equity markets are closing another strong month. The MSCI Asia Pacific Index was little changed on the day, but up 4.3% in October, the 10th consecutive monthly advance. Europe's Dow Jones Stoxx 600 is also flattish today, but up 1.6% on the month. It is the second monthly advance after a June-August swoon. The benchmark is closing in on the high for the year set in May.

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FX Daily, October 30: Dollar Slips in Consolidative Activity

2017-10-30

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2017-10-30

The markets are mixed, mostly responding to idiosyncratic developments, as the week's large events loom ahead. These BOJ, BOE, and FOMC meetings, eurozone flash CPI and US jobs reports. In addition, US President Trump is expected to announce his nomination of the next Fed chair, and the initial House tax bill will be unveiled.

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FX Weekly Preview: Thumbnail Sketch of the Week’s Big Events

2017-10-30

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2017-10-30

Busiest week of Q4. Fed, BOJ, and BOE, only the last is expected to change policy. Flash EMU CPI and US jobs. Positive developments in Italy, less so in Spain.

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FX Daily, October 24: Dollar Treads Water as 10-year Yield Knocks on 2.40percent

2017-10-24

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2017-10-24

The US dollar is narrowly mixed in mostly uneventful turnover in the foreign exchange market. There is a palpable sense of anticipation. Anticipation for the ECB meeting on Thursday, which is expected to see a six or nine-month extension of asset purchases at a pace half of the current 60 bln a month. Anticipation of the new Fed Chair, which President Trump says will be announced: "very, very soon."

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Canada: Monetary and Fiscal Updates This Week

2017-10-24

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2017-10-24

Divergence between US and Canada's two-year rates is key for USD-CAD exchange rate. Canada's 2 hikes in Q3 were not part of a sustained tightening sequence. Policy mix considerations also favor the greenback if US policy becomes more stimulative.

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FX Daily, October 23: US Dollar Starts New Week on Firm Note

2017-10-23

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2017-10-23

The US dollar is enjoying modest gains against most currencies as prospects of both tax reform and additional monetary tightening by the Fed carry over from last week. The strong showing of the Liberal Democrats in Japan, where the governing coalition has maintained its super-majority is seen as confirmation of continuity. This helped lift Japanese shares and weighed on the yen. The Nikkei advanced 1.1%, the most in a month, and extends the...

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FX Weekly Preview: Three on a Match: US Tax Reform, ECB and Bank of Canada Meetings

2017-10-23

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2017-10-23

Busy week of economic data and central bank meetings, and reaction to Spanish developments and Japan and Czech elections. Focus below is on the Bank of Canada and ECB meetings and tax reform in the US. The biggest challenge to tax reform is unlikely on the committee level but on the floor votes, especially in the Senate, in a similar way the stymied health care reform. US and German 2-year rates are diverging the most since the late 1990s and...

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