Saturday , July 20 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

FX Steady Around Key Levels

3 days ago

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

4 days ago

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

5 days ago

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

9 days ago

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?

10 days ago

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

11 days ago

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

12 days ago

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

15 days ago

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

17 days ago

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?

19 days ago

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

22 days ago

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

23 days ago

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

24 days ago

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

25 days ago

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

26 days ago

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?

29 days ago

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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In FX – Back to the Safety Trade

June 14, 2019

Market Drivers June 14, 2019
US Iran tensions have markets on edge
US Retail Sales on tap
Nikkei -0.40% Dax -0.61%
UST 10Y 2.06%
Oil $52/bbl
Gold $1352/oz.
Europe and Asia:
CNY Industrail Production 5.0% vs. 5.4%
North America:
USD Retail Sales 8:30
Markets were on edge at the end of the week with USD and yen gaining in overnight trade on safe harbor flows as tensions between the US and Iran continued to escalate over the sabotage of oil tankers in the Gulf.
US accused Iran of masterminding the attacks on oil tankers in the Strait of Hormuz producing a grainy video of what US officials purported to be an Iranian navy ship removing an unexploded mine off the hull of a Japanese tanker. US officials quickly stated that they have no intentions to escalate the conflict – but the tension in

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Aussie back .6900 as Jobs fail to Impress

June 13, 2019

Market Drivers June 13, 2019
AU labor data beats but Aussie falls
UK Parliament blocks Labor move on no deal Brexit
Nikkei -0.46% Dax 0.58%
UST 10Y 2.11%
Oil $52/bbl
Gold $1336/oz.
Europe and Asia:
AUD AU Labor 42K vs. 16K
EUR EU Industrial Production -0.5% vs. -0.4%
North America:
USD Weekly jobless 8:30
Australian data beat its mark today coming in far better than expected, but the currency sold off on the news as the headline data hid the underlying slowdown in labor demand.
Australian jobs printed at 42K versus 16K eyed, but almost all of the gains came from the lower value part-time jobs, with full-time jobs only expanding by slightly more than 2K in May. The market read the news as a disappointment especially since the unemployment rate climbed from 5.1% to 5.2%, with traders

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In FX Risk Sentiment Sours – USDJPY Eyes 108.00

June 12, 2019

Market Drivers June 12, 2019
HK protests turn to riots
US CPI on deck
Nikkei -0.35% Dax 0.92%
UST 10Y 2.13%
Oil $52/bbl
Gold $1336/oz.
Europe and Asia:
No data
North America:
USD CPI 8:30
It’s been a generally quiet night in FX with no major news releases in either Asia or London session, but risk sentiment has clearly turned sour as protests in HK have turned into full-fledged riots pressuring USDJPY back towards the 108.00 figure.
The standoff between HK legislature and protesters turned violent over the opposition to the new extradition law that would send suspected criminals to China for prosecution. HK legislators have argued that the law was necessary to apprehend mainland Chinese criminals who have been hiding in HK to avoid Chinese authorities. Protesters, however, argue that

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In FX Risk-on is On

June 11, 2019

Market Drivers June 11, 2019
UK labor data beats
Cap
Nikkei 0.33% Dax 1.12%
Oil $53/bbl
Gold $1321/oz.
Europe and Asia:
GBP UK Average Earnings 3.1% vs. 2.9%
GBP UK Claimant Count 23.2K vs. 12.3K
North America:
USD PPI 8:30
USD Economic Optimism 10:00
Much better risk inflows supported by higher equities in both Asia and Europe helped keep USDJPY bid with the pair hitting session highs just below the 108.70 level ahead of the New York open.
President Trump continued to make positive remarks on trade looking for a meeting with President Xi at the G-20 summit at the end of the month. As we noted yesterday, “If the past actions have proven anything, it is that Trump loves to resolve the crisis he creates for dramatic effect. With G-20 meeting coming up at the end of the month, the US

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GBPUSD Dumps While USDJPY Pumps

June 10, 2019

Market Drivers June 10, 2019
UK data disappoints
Cap open in USDJPY
Nikkei 1.20% Dax 0.77%
Oil $53/bbl
Gold $1326/oz.
Europe and Asia:
GBP UK GDP -0.4% vs. -0.1%
GBP UK MP -3.9% vs. -1.1%
North America:
No data
Latest UK economic data missed the mark by a wide margin showing a serious deterioration in business activity sending cable back below the 1.12700 figure in morning London dealing.
UK eco news missed on all fronts with GDP contracting 0.4% versus 0.1% while Manufacturing Production declined by a whopping -3.9% versus forecasts of -1.1% drop. Part of the reason for such unexpected decline was the sharp falloff in UK car production due to a planned shutdown of plants linked to Brexit uncertainty, so the shocking surprise could be due to one-off effects. However the overall

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RBA Cuts; Will Fedspeak Turn Dovish?

June 4, 2019

Market Drivers June 4, 2019
RBA cuts but does not guide
Powell speaks
Nikkei -0.01% Dax -0.18%
Oil $53/bbl
Gold $1327/oz.
Europe and Asia:
EUR EZ CPI n/a
North America:
USD Fedspeak Powell 9:45
FX was steady in early London trade today with the dollar slightly weaker against the majors but stronger against the yen as risk-off flows abated somewhat.
In Asia session trade the big story was the rate cut by the RBA which lowered the benchmark rate to its lowest ever at 1.25%. The cut was well anticipated by the market and the RBA did not provide any forward guidance to any future rate cuts, thus putting a hawkish tone on the event which helped Aussie rally to within a few pips of the key .7000 level in post news reaction.
In its statement, the RBA noted that “The central scenario remains

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US 10Y Yields Sink – Dollar Dented From all Sides

June 3, 2019

Market Drivers June 3, 2019
US 10Y yields sink
UK PMI misses
Nikkei -0.92% Dax -0.52%
Oil $53/bbl
Gold $1314/oz.
Europe and Asia:
EUR EU Final PMI 47.7 vs. 47.7
GBP UK PMI Manufacturing 49.4 vs. 52.3
North America:
CAD Mannufcaturing PMI 9:30
USD ISM Manufcaturing 10:00
The relentless collapse in US yields saw no pause at the start of week’s trade with US 10 year rates plunging below the 2.10% level to hit a low of 2.06% in early London trade. The move sent the dollar lower against both the high yielder and the low yielders as the greenback sank against the yen and Swissie as well as Aussie and kiwi.
The angst in bonds is driven by investor fears over the new front in the trade war that Trump opened up against Mexico. So far the collapse in bond yields has not translated into a

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German Unemployment Spikes; Why Yen Crosses Could Tumble More

May 29, 2019

Market Drivers May 29, 2019
GE unemployment spikes
BOC on tap
Nikkei -1.21% Dax -1.32%
Oil $58/bbl
Gold $1284/oz.
Europe and Asia:
EZ German Unemployment 60K vs. -8K eyed
North America:
CAD BOC Statement
Another night of risk off flows in FX with Asian and European bourses all lower by more than 1% adding to the downward pressure in USDJPY which hit a low of 109.15 in early Asian dealing but so far has been able to old above the 109.00 figure.
The escalation of tensions between China and US is starting to reach a fever pitch with China now stating that US has no right to name anyone a currency manipulator – a far less diplomatic language than it usually uses and a sign that Chinese may be moving to a much more confrontational stance with US on the issue of trade.
One issue that has

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USDJPY Heads towards 109 as US Yields at 19 Month Low

May 28, 2019

Market Drivers May 28, 2019
USDJPY at session lows as risk-off flows increase
Cable back to 1.2650
Nikkei -0.37% Dax -0.51%
Oil $58/bbl
Gold $1284/oz.
Europe and Asia:
EZ German GFK Consumer Climate 10.1 vs. 10.4
North America:
USD Consumer Sentiment 10:00
US yields hit their lowest level in 19 months in morning London dealing sending USDJPY towards the 109.00 figure and sparking some mild risk-off sell-off in commodity currencies.
Latest proclamation from President Trump that he was not willing to make a trade deal with China yet, soured investor sentiment in European trade and sent US yields lower to 2.27% on the benchmark 10 year bond. This was the lowest reading since October of 2017 and indicates that capital markets may be preparing for a long cold war on trade which is likely

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May Resigns – What Does it All Mean for GBPUSD?

May 24, 2019

Market Drivers May 23, 2019
Aussie feels pressure from rate cut projections
UK Retail Sales
Nikkei -0.16% Dax 0.72%
Oil $58/bbl
Gold $1282/oz.
Europe and Asia:
UK Retail Sales 0.0 vs. -0.3% eyed.
North America:
USD Durable Goods 8:30
Theresa May announced that she should resign on June 7th paving the way for a new leadership election of Tories and a new UK PM to deal with the Brexit drama.
Ms. May who managed to alienate every faction of UK politics in her quest to deliver a Brexit without consequences was widely reviled by both her party and the opposition and her departure initially produced a relief pop in the pound through the 1.2700 figure, but the move was quickly sold as markets feared that Tories may elect an even more extreme Brexit leader such as Boris Johnson who could pull

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Cable at Fresh Lows as May’s Plan DOA

May 22, 2019

Market Drivers May 22, 2019
UK PPI cooler
FOMC minutes on tap
Nikkei 0.05% Dax 0.09%
Oil $62/bbl
Gold $1275/oz.
Europe and Asia:
UK CPI 1.8% vs 1.9%
North America:
CAD Retail Sales 8:30
USD FOMC Minutes 14:00
Cable hit fresh 6 month lows in early London trade today with traders expressing their disappointment as PM May last ditch effort to salvage her Brexit deal yesterday.
Ms. May’s plan appears to be dead on arrival as both Labor and Tories indicated that they would not support her proposal to first approve the customs union deal she negotiated and the possibly consider a second referendum on the matter. Indeed, markets were rife with reports that there was an effort afoot amongst the Tories to push Ms. May out of office as early as Wednesday without even allowing her to put her

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Dollar Flexes Muscles Ahead of EU Elections

May 21, 2019

Market Drivers May 21, 2019
AUD falls through 6900 on dovish Lowe
Dollar bid across the board
Nikkei -0.14% Dax 0.62%
Oil $63/bbl
Gold $1275/oz.
Europe and Asia:
No Data
North America:
USD Existing Home Sales 10:00
The dollar was well bid across the board as political and economic factors dogged the other G-10 currencies today in light but firmly directional trading in Asian and early European dealing.
The Aussie, which saw a strong boost yesterday from the win of the center-right Liberals over the weekend, gave back a big portion of its gains after Governor Lowe conceded that the central bank will likely cut rates in June. Although markets have largely priced an RBA rate cut, up to now Mr. Lowe has been non-committal about a rate cut, leaving room for doubt that RBA would move this

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