Thursday , August 22 2019
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Boris Schlossberg

Boris Schlossberg

Real time analysis of forex market from co founder of BKForex Tweets are commentary only.

Articles by Boris Schlossberg

Pound Slips Below 1.2100 as Johnson Promises Hard Brexit

2 days ago

Market Drivers August 20, 2019
BoJo reiterates commitment to hard Brexit
Markets in the summer stall
Nikkei 0.55% Dax 0.15%
UST 10Y 1.59%
Oil $56/bbl
Gold $1499/oz
BTCUSD $10750
Europe and Asia:
No Data
North America:
No Data
Its been a very quiet dealing session in Asian and early Europe today with virtually no eco data or fresh headlines on the tape as majors traded listlessly in very tight ranges with many players away for the final two weeks of summer.
The only discernible movement was in the pound which weakened below the 1,2100 on comments by Boris Johson that he was committed to taking the UK out of EU by the October 31st deadline regardless of whether there was a deal or not. Mr. Johnson is scheduled to hold talks with Macron and Merkel later this week, but if the talks fail

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Promise of Stimulus Helps Steady the Euro

3 days ago

Market Drivers August 19, 2019
EUR rebounds to 1,1100 onn German stimulus talk
Risk trades better
Nikkei 0.71% Dax 0.84%
UST 10Y 1.58%
Oil $55/bbl
Gold $1507/oz
BTCUSD $10750
Europe and Asia:
EUR CPI
North America:
No Data
FX markets were steady at the start of the trading week with risk assets bid up slightly as equities posted nearly 1% gains in Japan and Europe.
With economic calendar essentially barren and no new headlines to drive trade most of the majors remained in steady ranges but EURUSD continued its recovery trading above the 1.1100 figure in morning London dealing after Gernan officials confirmed Friday’s reports that the government would be willing to engage in fiscal stimulus in case of a serious economic slowdown.
German Finance Minister Olaf Scholz said on Sunday,

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The Rebound in the Pound Continues

6 days ago

Market Drivers August 16, 2019
EUR hits a 2 week low
Pound rises above 1.2100
Nikkei 0.06% Dax 0.96%
UST 10Y 1.56%
Oil $55/bbl
Gold $1507/oz
BTCUSD $10000
Europe and Asia:
No data
North America:
USD Building Permits/Starts 8:30
USD U of M 10:00
Financial markets started the final day of the week in a decidedly better mood with risk on flows all across equity markets as sentiment stabilized a bit.
The dollar was stronger against both the euro and the yen while commodity pairs held steady and cable powered through the 1.2150 figure after a week of better than expected economic results.
There are no major economic releases today, so FX is likely to be driven by equity flows and geopolitical headlines, but assuming the markets see no further exogenous shocks on trade or political

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Data Soothes Risk , But China Aggravates It

7 days ago

Market Drivers August 15, 2019
AU Labor beats
UK Retail Sales beats
Nikkei -1.21% Dax -0.63%
UST 10Y 1.56%
Oil $54/bbl
Gold $1517/oz
BTCUSD $9800
Europe and Asia:
AUD AU Labor 41.1 vs. 14.0
GBP UK Retail Sales 3.3% vs. 2.6%
North America:
USD Retail Sales 8:30
There was a decidedly risk-on tone in global equity markets with USDJPY spiking nearly 90 pips in a matter of minutes at the start of London trade, but the pair gave up much of its gains in the morning dealing after China came out with harsh rhetoric in response to proposed additional 10% tariffs by US.
The global day started well on the data front with Australian employment beating consensus by a wide margin as jobs increased by 41K versus 14K. More importantly, fully 35k of jobs came from full-time employment indicating that

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In FX – Setting up for Perfect Storm of Risk?

9 days ago

Market Drivers August 13, 2019
UK Labor in line
GE ZEW misses badly
Nikkei -1.117% Dax 0.48%
UST 10Y 1.64%
Oil $55/bbl
Gold $1524/oz
BTCUSD $11350.
Europe and Asia:
GBP UK Labor 28K vs.42K
UR GE ZEW -44 vs. -28
North America:
USD CPI 8:30
FX markets were quiet but clearly concerned about the growing sense of political and economic risks across the globe with risk-off currencies still bid into the London morning trade.
The primary hotspot is Hong Kong which has seen its airport face chaos for a second day in a row as protestors have shut down the main entryway into the city creating massive havoc for airlines and passengers. The uprising in HK is reaching a breaking point and there is growing concern that it becomes a geo-poltical nightmare if Chinese decide to use force against the

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After Days of Volatility – All Quiet on the FX Front

14 days ago

Market Drivers August 8, 2019
Chinese Trade better
PBOC fixes USDCNY above 7.000
Nikkei 0.37% Dax 0.67%
UST 10Y 1.73%
Oil $52/bbl
Gold $1497/oz
BTCUSD $11900.
Europe and Asia:
CNY Trade
North America:
No Data
FX was very quiet in Asian and early London trade after several days of volatility caused by risk-off flows.
There was some flutter of activity when the PBOC sent the daily fix of USDCNY above 7.000 for the first time since 2008, but the price action calmed quickly and all the crosses has remained in tight ranges for now.
On the economic front, the only report of importance was the release of the Chinese trade data which showed that exports remain strong despite global trade tensions. Exports were up more than 10% even as Trump Administration imposed tariffs on a wide variety

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BOOM! – RBNZ Cuts 50bps

15 days ago

Market Drivers August 7, 2019
RBNZ cuts by 50bps
German IP -1.5% vs. 0.5%
Nikkei -0.33% Dax 1.33%
UST 10Y 1.68%
Oil $53/bbl
Gold $1487/oz
BTCUSD $11600.
Europe and Asia:
RBNZ cut 50bp vs. 25bp
North America:
CAD Ivey PMI 8:30
The Reserve Bank of New Zealand shocked the market by cutting rate by 50bps rather than the forecast 25bps instantly sending the kiwi lower by one big figure as the currency dropped below the .6400 level before recovering slightly by mid-morning London trade.
Bucking the gradualist approach of other central banks, the RBNZ opted for larger cut and suggested that further cuts may be in store as the neutral interest rate has declined.
In its statement, the RBNZ noted, “GDP growth has slowed over the past year and growth headwinds are rising. In the absence of

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Yuan Pops the 7.000 Barrier Sending Risk Reeling

17 days ago

Market Drivers August 5, 2019
USDCNY pops the 7.000 barrier
UK PMI beats
Nikkei -1.74% Dax -1.48%
UST 10Y 1.76%
Oil $55/bbl
Gold $1456/oz.
Europe and Asia:
EUR Sentix -13.7
EUR Composite PMI 53.2 vs. 53.2
GBP UK PMI Servivces 51.4 vs. 50.4
North America:
USD ISM Non Manufcaturing 10:00
The USDCNY rate soared past the 7.000 figure at the start of the trading week sending risk reeling as investors feared the escalation in the trade war between US and China.
With PBOC letting the currency depreciate past the psychologically important mark Chinese policymakers signaled that they were willing to raise the stakes after President Trump threatened to add another 10% tariffs on $300 Billion worth of goods in September. The Chinese government further ordered all agencies to refrain from

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Will BoE Send GBPUSD to 1.2000?

21 days ago

Market Drivers August 1, 2019
Dollar pushes higher
EU data remains weak
Nikkei 0.09% Dax -0.13%
UST 10Y 2.06%
Oil $57/bbl
Gold $1404/oz.
Europe and Asia:
EUR PMI 46.5 vs. 46.4
GBP PMI 48.0 vs. 47.7
North America:
GBP BoE 7:00
USD ISM Man 10:00
The dollar rally continued in Asia and early European trade today as the single currency extended its gains against most majors after what analyst called the Fed’s “hawkish” cut.
Although the Fed cut rates by 25bp yesterday Chairman Powell characterized the move as a “mid-cycle adjustment” indicating that the long term monetary policy remained contractionary as the Fed continues on its quest to normalize rates.
Powell’s message was far from clear as he did not commit to any one course of action but perhaps by simply refusing to fully embrace the

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Aussie Pops on CPI but FOMC holds key

22 days ago

Market Drivers July 31, 2019
Aussie pops on better CPI
All eyes on the Fed
Nikkei -0.86% Dax 0.18%
UST 10Y 2.05%
Oil $58/bbl
Gold $1430/oz.
Europe and Asia:
AUD CPI 0.4% vs. 0.4%
EUR CPI
North America:
USD ADP 8:30
CAD GDP 8:30
USD FOMC 14:00
A quiet night in FX ahead of the key FOMC decision later today with only Aussie seeing some movement as CPI data in Australia printed hotter than forecast.
Australian CPI came in at 0.6% vs. 0.5% although the trimmed mean came in right in line with expectations at 0.4%. The news was good enough to pop the pair to .6899 but it stalled ahead of the big figure as the long term implications of the release are likely to be immaterial. Inflation remains well below the RBA 2% target and will not be a factor in any policy considerations the central

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BOJ Holds Yen Strengthens

23 days ago

Market Drivers July 30, 2019
Cable continues to drift lower
BOJ holds
Nikkei 0.43% Dax 1.13%
UST 10Y 2.05%
Oil $57/bbl
Gold $1428/oz.
Europe and Asia:
EUR Business Climate -0.12 vs. 0.1
North America:
USD Personal Income/Spending 8:30
USD PCE 8:30
The yen strengthened in Asia session trade today while cable continued to drift lower in generally quiet FX trade as markets awaited the FOMC decision on Wednesday.
USDJPY dipped towards 108.50 after BOJ left its monetary policy unchanged and refused to commit to any additional measures at this time. The reaction was relatively muted, but many market players now expect the yen to strengthen over the next several months if the Fed moves to an easing stance rather than one and done posture.
That’s why tomorrow FOMC meeting looms large in the

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Is GBPUSD Headed for 1.2000?

24 days ago

Market Drivers July 29, 2019
Cable hits 2-year lows
Raab ramps up no-deal rhetoric
Nikkei -0.19% Dax -0.10%
UST 10Y 2.06%
Oil $56/bbl
Gold $1418/oz.
Europe and Asia:
GBP UK Mortgage Approvals 66.44K vs. 65.75K
North America:
No data
Cable hit fresh two year lows today in early London dealing as the new government of Boris Johnson ramped up its no-deal Brexit rhetoric sending markets into panic that UK may fall out of the European Union without any customs deal in place.
GBPUSD dropped to a low of 1.2320 before finding a modicum of support after Dominic Raab, UK foreign secretary, stated that if EU continues to be stubborn then no-deal Brexit was a possibility.
The stumbling block in negotiations is political rather than economic as all the customs terms have been worked out. The

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FX Steady Around Key Levels

July 17, 2019

Market Drivers July 17, 2019
UK CPI prints in-line
EU CPI hotter
Nikkei -0.31% Dax -0.03%
UST 10Y 2.10%
Oil $58/bbl
Gold $1401/oz.
Europe and Asia:
GBP UK CPI Core 0.0% vs. 0.0%
EUR CPI 0.4% vs. 0.3%
North America:
USD Building Permoits 8:30
CAD CPI 8:30
It’s been a quiet midweek night of trade in FX with majors holding steady around key levels after selling off against the dollar yesterday.
Cable continued to feel downside pressure as shorts took out the stops around 1.2400 in early morning London dealing, but the pair failed to follow through further and short-covering brought the unit back up above the 1.2400 level by mid-morning trade. Eco data had virtually no impact today as CPI printed in line at 2.0% while PPI reading came in a tad cooler. Overall inflation readings in UK

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Cable Starts To Crash as Brexit Worries Intensify

July 16, 2019

Market Drivers July 16, 2019
UK Labor data
US Retail Sales on tap
Nikkei -0.69% Dax 0.08%
UST 10Y 2.09%
Oil $59/bbl
Gold $1413/oz.
Europe and Asia:
GBP UK Labor
North America:
USD Retail Sales 8:30
The dollar was firmer in Asian and European trade today with cable particularly weak as worries about a no-deal Brexit heightened the market anxiety and sent the pair below the 1.12500 level once again while pushing EURGBP to fresh 6 month highs.
UK Labor data came in mixed today with wages showing an upside surprise at 3.6% versus 3.5% eyed, while Claimant count rose to 38K versus 18.9K forecast. The solid beat on wages and relatively steady job picture continues to suggest that the UK economy remains resilient despite the political turmoil. But the focus of the market is now squarely on

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Commdollars Lead FX on Chinese Data Beat

July 15, 2019

Market Drivers July 12, 2019
Chinese data beats
Comms rally
Nikkei 0.20% Dax 0.41%
UST 10Y 2.12%
Oil $60/bbl
Gold $1414/oz.
Europe and Asia:
CNY 9.8% vs. 8.5%
CNY IP 6.3% 5.2%
CNY GDP 6.2% vs. 6.2%
North America:
USD Empire 8:30
Chinese data beat the forecast providing a lift to commodity dollars in the only price action at the start of the week.
With no major economic releases out of the G-7 today and all the central bank speak behind the market, FX trade was generally quiet as Chinese eco data took center stage, showing that both consumer demand and Industrial Production were firmer than expected.
Chinese Retail Sales rose by 9.8% versus 8.5% forecast while Industrial Production expanded at 6.3% versus 5.2% eyed. Both data points suggest that despite the trade war tensions with US,

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Dollar Weakness Persists Post Powell

July 11, 2019

Market Drivers July 11, 2019
BOE Financial Stability Report offers nothing new
2nd Day of Powell
Nikkei 0.51% Dax 0.14%
UST 10Y 2.05%
Oil $60/bbl
Gold $1423/oz.
Europe and Asia:
BoE Financial Stibility Report
North America:
USD CPI 8:30
USD Powell Testifies to Senate 10:00
It’s been a very subdued night of trade in FX with the exception of USDJPY which tested support below the 108.00 in early Asia trade as dollar selling continued in the wake of surprisingly testimony by Fed Chair Jerome Powell yesterday.
Chairman Powell made it clear that despite relatively strong US growth, the Fed was concerned about the general slowdown in global economic activity, the rising trade tension between the US and the rest of the world and the very subdued level of inflation – all of which has

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If Powell is Hawkish Where are the Trades?

July 10, 2019

Market Drivers July 10, 2019
French IP beats
All eyes on Powell
Nikkei -0.15% Dax -0.21%
UST 10Y 2.097%
Oil $58/bbl
Gold $1391/oz.
Europe and Asia:
EUR FR IP 2.1% vs. 0.3%
GBP UK Trade Balance -11.5B vs -12.5B
GBP UK GDP 0.3% vs. 0.3%
North America:
USD Powell Testifies to House 10:00
CAD BOC Rate Decision 10:00
USD FOMC Minutes 14:00
FX markets were generally quiet ahead of key testimony to Congress from Fed Chair Jerome Powell later today.
The dollar remained bid with USDJPY hovering just below the 109.00 figure aided by a rise in US rates which climbed to within a whisker of the key 2.10% level on the 10-year bond. The markets have given up all expectation of a 50bp cut in July and the default assumption is that the Fed will cut 25bp at the end of the month and will then remain in

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Buck Holds BId in Quiet Market

July 9, 2019

Market Drivers July 9, 2019
Dollar rally resumes
US yields creep higher
Nikkei 0.14% Dax -1.10%
UST 10Y 2.06%
Oil $58/bbl
Gold $1387/oz.
Europe and Asia:
No Data
North America:
No Data
It’s been another news-free night in FX as the economic calendar remained empty, buy the buck saw a small bid in Asian and early European trade as US yields continued to rise.
The EURUSD fell through the 1.1200 level before rebounding slightly while USDJPY rallied to 108.96 before backing off the big figure as US 10Y yields continued to rise hitting 2.07% in overnight trade.
The FX trade these days is almost entirely dependent on US yields and the question for the market going forward is whether US yields have made an intermediate exhaustion low under the 2.0% mark last week. If the Fed Chair testimony

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FX Starts the Week in Cautious Mode

July 8, 2019

Market Drivers July 8, 2019
Dollar gives up some of Friday’s gains
EZ investor confidence at 5 year lows
Nikkei -0.98% Dax -0.22%
UST 10Y 2.02%
Oil $57/bbl
Gold $1405/oz.
Europe and Asia:
EUR GE IP 0.3% vs. 0.4%
EUR GE Trade Balance 18.7B vs. 16.8B
EUR Sentix -5.8 vs. 0.3
North America:
No Data
It’s been a very quiet start to the trading week in FX, with markets coming back post US holiday amidst general summer doldrums and lack of any meaningful data on the eco calendar.
The dollar was slightly weaker post its NFP driven surge last Friday with USDJPY unable to clear the 108.50 several times in Asia session trade. The pair fell back to 108.28 but rebounded as it continues to hold just below the level in morning London dealing.
The trade in USDJPY is driven by US 10Y yields which also

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Why Today’s NFP is So Important

July 5, 2019

Market Drivers July 5, 2019
USD bid ahead of NFPs
GE Factory Orders miss
Nikkei 0.20% Dax -0.30%
UST 10Y 1.96%
Oil $56/bbl
Gold $1414/oz.
Europe and Asia:
EUR GE Factory Orders -2.2% vs. -0.1%
North America:
USD NFPs 8:30
CAD Labor Data 8:30
The dollar was mildly bid higher ahead of the marquee event of the week as traders awaited the key US Non-Farm payrolls release for clues to possible Fed policy changes later this month.
The US NFPs are projected to rebound to 140K from 75K the month prior which would put US job growth back on the steady 150K/month pace and likely keep GDP growth steady. Ahead of the release US 10 Year rates have been battered by risk aversion concerns and hunt to yield sending the benchmark yield to a new yearly low of 1.93% earlier this week.
All eyes,

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US Data Takes Center Stage

July 3, 2019

Market Drivers July 3, 2019
EU data beats
UK data teeters on contraction
Nikkei-0.53% Dax 0.64%
UST 10Y 1.94%
Oil $56/bbl
Gold $1423/oz.
Europe and Asia:
EUR EZ Final PMI 52.2 vs. 52.1
GBP UK PMI Services 50.2 vs. 51.0
North America:
USD ADP 8:15
USD ISM Service 10:00
The relentless push lower in US yields weighed on USDJPY in Asian and early European trade today sending the pair to a test of the 107.50 level, but it stabilized ahead of the New York open along with rates markets as focused turned to US data.
With US economic calendar broken up by July 4th holiday tomorrow, the market will be all eyes on the ADP and ISM Services due later today. Although Friday’s NFPs will be the marquee event of the week, today’s releases will give a good glimpse at the state of labor demand and

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Will the Buck Bounce Last?

July 1, 2019

Market Drivers July 1, 2019
Dollar up on G-20 news
EUR final manufacturing lower
Nikkei 2.13% Dax 1.38%
UST 10Y 2.02%
Oil $60/bbl
Gold $13187/oz.
Europe and Asia:
EUR EZ Final PMI 47.6 vs. 47.8
GBP UK PMI Manufactutinng 48 vs. 49.2
North America:
USD ISM Manufacturing 10:00
The dollar was bid across the board in post-G-20 meeting relief after President’s Trump and Xi agreed to a trade truce at the summit avoiding further tariffs for now.
USDJPY gapped higher touching a high of 108.53 in late Asian trade but has backed off a bit the highs going into the NY open. Although some consolidation is due, the pair looks t have made a near term panic bottom last week near the 106.50 level and will likely now grind higher as risk aversion flows begin to unwind.
One key consideration going

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In FX – Cautious Back and Forth Ahead of Trump/Xi

June 28, 2019

Market Drivers June 28, 2019
Majors mark time
EZ core CPI bit hotter
Nikkei-0.29% Dax 0.44%
UST 10Y 2.02%
Oil $59/bbl
Gold $1413/oz.
Europe and Asia:
EZ Core CPY 1.1% vs. 1.0%
North America:
CAD GDP 8:30
USD Personal Income/Spending
USD Revised UOM
It’s been a quiet night of trade with majors moving up and down in narrow ranges in an aimless back and forth dance as markets awaited the much-anticipated meeting between Presidents Trump and Xi.
At this point, sentiment has skewed towards some positive resolution – at the very least a truce on any further tariff impositions – so that if talks yield nothing, the FX markets are likely to open up gap down on Monday in Auckland.
Neither party has offered any hints at the state of negotiations in the past 12 hours, so FX has been in an

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Trade Optimism Takes USDJPY Through 108.00

June 27, 2019

Market Drivers June 27, 2019
USDJPY pops 108.00 figure
EZ CPI in line
Nikkei 1.19% Dax 0.58%
UST 10Y 2.06%
Oil $58/bbl
Gold $1402/oz.
Europe and Asia:
EZ GE CPI
North America:
USD GDP 8:30
Optimism on trade continued to support USDJPY today with the pair taking out the 108.00 figure in Asian session trade.
Although there was no fresh news on the trade front, sentiment remained hopeful into the G-20 meeting which starts today. Chinese authorities remained neutral in their tone but did confirm that Lighthizer and Liu had a good call on June 24 ahead of the summit.
It’s still unclear just how progress has been made in negotiations, but even the possibility of a “truce” with the US agreeing not to add or raise any further tariffs could be seen as a positive sign by the market, although

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US-China 90% Done? Risk FX Pops

June 26, 2019

Market Drivers June 26, 2019
Mnuchin says 90% of US-China deal done
Risk Pops
Nikkei -0.51% Dax 0.62%
UST 10Y 2.002%
Oil $59/bbl
Gold $1406/oz.
Europe and Asia:
NZD RBNZ stays on hold
North America:
USD Durable Goods 8:30
Treasury Secretary Mnuchin said that 90% of US-China trade deal was done helping stop spur a pop in risk FX on what was otherwise a very quiet Asian and early European session.
USDJPY immediately raced to 107.70 on the news while both Aussie and kiwi also strengthened with the former approaching the key .7000 resistance level for the first time in weeks.
Although some analysts have pointed out that Mr. Mnuchin’s comments were not new, that 90% of the negotiation was already done and that despite that progress the chance of an actual deal has not risen, the markets

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USDJPY Breaks 107.00 as Iran Spurns Diplomacy

June 25, 2019

Market Drivers June 25, 2019
USDJPY test 107.00
Kiwi data beats
Nikkei -0.43% Dax -0.53%
UST 10Y 2.006%
Oil $58/bbl
Gold $1429/oz.
Europe and Asia:
NZD Trade Balance 264M vs. 200M
North America:
No Data
USDJPY broke below the 107.00 figure for the first time since the flash crash at the start of the year as Iran hardened its stance stating that no diplomatic solution would be possible.
In fact, the Iranian statement was particularly harsh noting that fresh round of sanctions from the US means that the diplomatic path is closed “forever”. The news pushed the 10Y yields below the key 2.00% level which in turn sent USDJPY to a low of 106.77.
The simmering tension between Iran and the US continues to keep markets on edge, but few speculators are pricing a full-scale conflict as neither

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In FX – the Buck Still Gets No Respect

June 24, 2019

Market Drivers June 24, 2019
Aussie and CAD rally
IFO in line
Nikkei 0.1% Dax -0.40%
UST 10Y 2.036%
Oil $58/bbl
Gold $1406/oz.
Europe and Asia:
EUR GE IFO 97.4 vs. 97.4
North America:
No Data
The dollar failed to make any recovery in Monday morning dealing remaining lower against the majors and lagging badly against the comdollars which were bid for a variety of reasons.
Aussie was higher against the dollar breaking above the .6950 level after RBA Governor Lowe noted that rate cutting mah not be the best policy for central banks if everyone in G-11 pursued the same path resulting in exchange rate parity. Although the RBA is widely expected to cut rates twice this year, Governor Lowe’s comments reflected the sentiment of many central bankers who are loathe to cut rates during times of

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Dollar Ready for Bounce?

June 21, 2019

Market Drivers June 21, 2019
Risk on after Trump pulls back on Iran strike
EZ PMI stabilizes
Nikkei -0.95% Dax 0.30%
UST 10Y 2.03%
Oil $57/bbl
Gold $1388/oz.($1400 taken out)
Europe and Asia:
EUR EZ Flash PMI 52.1 vs. 51.8
North America:
USD Flash PMI 8:30
After an initial burst of risk-off flows in Asia that took USDJPY all the way down to 107.05, FX sentiment improved after markets learned that President Trump called off a missile strike against Iran at the very last moment.
The tensions in the Gulf remained at a very high level after Iran knocked out a US drone claiming that it violated its airspace. President Trump noted that such a move was a mistake and the market was primed for a retaliatory strike but the last moment he pulled back communicating to Iran that the US would

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Dollar Beaten Across the Board – What Happens Now?

June 20, 2019

Market Drivers June 20, 2019
USDJPY tests year lows
US 10Y hits 2.00%
Nikkei 0.60% Dax 0.99%
UST 10Y 2.00%
Oil $55/bbl
Gold $1379/oz.
10Y 2.00%
Europe and Asia:
GBP UK Retail Sales -0.5% vs. -0.5%
North America:
CAD ADP 8:30
USD Philly Fed 8:30
The dollar was destroyed across the board in Asian and early European trading today after the Fed signaled that it will cut rates at its next meeting in July.
US 10 year yields hit a low of 2% causing USDJPY to probe its swing lows at 107.50 while EURUSD climbed above the 1.1300 figure despite threats by ECB just a few days ago to lower rates deeper into negative territory.
The dollar drop was really a story of relative weakness as the markets reacted to the possible adjustment of lower US rates. Some bears have even argued that to have any

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In FX – All Eyes on Powell

June 19, 2019

Market Drivers June 19, 2019
The market waits for FOMC
UK CPI on line
Nikkei 1.72% Dax -0.05%
UST 10Y 2.06%
Oil $53/bbl
Gold $1342/oz.
10Y 2.08%
Europe and Asia:
GBP UK CPI 0.3% vs. 0.3%
North America:
CAD CPI 8:30
USD FOMC 14:00
Ahead of the FOMC meeting today the FX markets were quiet with majors tracing out narrow ranges as traders squared up for the event.
On the eco calendar, the data in Asia and Europe was thin, but UK CPI data printed slightly hotter than forecast at 1.7% for core versus 1.6% eyed giving cable a bit of a boost. Tomorrow’s BoE meeting is expected to be a non-event as UK central bankers will likely hold policy at current levels given the uncertainty surrounding Brexit, but today’s price data makes it clear the BoE monetary authorities may have less leeway in

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