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Tag Archive: #USD

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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NAFTA Worries Take Toll, Yellen’s Best Guess Supports Greenback

2017-10-17

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2017-10-17

Risk that NAFTA collapses weighs on CAD and MXN. Yen is slightly firmer despite US yields edging higher and weekend polls suggesting LDP could nearly secure a 2/3 majority of its own. The sterling is consolidating after sharp moves at the end of last week.

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FX Weekly Preview: The Markets and the Long Shadow of Politics

2017-10-16

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2017-10-16

Rise in paper asset prices, including so-called cyber currencies, reflects the abundance of capital. Have we forgotten what Minski taught again? Political considerations may dominate ahead of the ECB meeting later this month.

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Political Focus Shifting in Europe

2017-10-15

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2017-10-15

There was a huge sigh of relief among investors when it became clear that the populist-nationalist wave that ostensibly led to Brexit and Trump's election was not going to sweep through Europe. The euro gapped higher on April 24, and it has not looked back. We have suggested that with the outcome of the German election, European politics shift from tailwind to headwind.

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Brief Thoughts on the Euro

2017-10-14

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2017-10-14

Euro peaked a month ago. The reversal before the weekend marks the end of the leg lower. ECB meeting is next big focus. ECB may focus on gross rather than net purchases.

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FX Daily, October 13: Sterling Extends Yesterday’s Recovery; US Data Awaited

2017-10-13

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2017-10-13

The EU's leading negotiator whipsawed sterling yesterday. The net effect was to ease fears that the UK would leave the EU without the agreement Initial concerns that the negotiations had stalled sent sterling to nearly $1.3120. The willingness to discuss a two-year transition period spurred sterling's recovery. After trading on both sides of Wednesdays, it closed on its highs was a bullish technical signal and there has been follow-through buying...

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Dollar Dropped like Hot Potato After Core CPI Disappointed

2017-10-13

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2017-10-13

The dollar was bid before the US economic data. The market responded quickly upon seeing the disappointing 0.1% rise in core CPI. Given the base effect, the 0.1% increase kept the year-over-year rate at 1.7% for the fourth consecutive month. The dollar reversed lower.

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FX Daily, October 11: Markets Looking for a New Focus

2017-10-11

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2017-10-11

The US dollar is consolidating after retreating since reversing lower following the US jobs data at the end of last week. While the greenback has largely been confined to yesterday's ranges against the major currencies, the euro has made a marginal new high, briefly trading through the $1.1830 area noted yesterday.

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