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USDJPY Up 7 out of 8 Trading Days

USDJPY Up 7 out of 8 Trading Days Daily FX Market Roundup Sept 13, 2019 Next week is the Federal Reserve’s monetary policy announcement and despite widespread expectations for the Fed’s second rate cut this year USD/JPY is trading strongly ahead of the rate decision. The pair ended the week up for the 7th out of 8 trading days. The latest economic reports beat expectations with retail sales rising 0.4% in the month of August, which was double expectations. Consumer sentiment also...

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Why is the Pound Rallying So Much?

Market Drivers September 13, 2019 Sterling breaks through 1.2400 Euro takes out 1.1100 Nikkei 1.05% Dax 0.24% UST 10Y 1.798% Oil $54/bbl Gold $1504/oz BTCUSD $10,292 Europe and Asia: No Data North America: USD Retail Sales 8:30 USD U of M 10:00 The pound hit fresh multi-month highs today rising through the 1.2400 barrier for the first time since July. The move was more technical rather than fundamental in nature as the newsflow on the Brexit front remains confusing. Initially, UK papers...

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3 Reasons Behind EURO’s V-Shaped ECB Reversal

3 Reasons Behind EURO’s V-Shaped ECB Reversal Daily FX Market Roundup Sept 11, 2019 The European Central Bank went above and beyond today in rolling out a massive stimulus package. Their actions not only reflect their desperation but also their resolve to boost the Eurozone economy and mitigate the risk of recession. These were the five steps taken today and when they were first announced, the combination of efforts drove EUR/USD to a low of 1.0927. The ECB also lowered their inflation...

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Can Mario Keep it Super?

Market Drivers September 12, 2019 USDJPY takes out 108.00 but fades off highs All eyes on ECB Nikkei 0.75% Dax 0.09% UST 10Y 1.72% Oil $55/bbl Gold $1504/oz BTCUSD $10,000 Europe and Asia: EU IP North America: ECB Rate 7:45 ECB Presser 8:30 More positive murmurings on the US-China trade front helped fuel a small rally in yen pairs during the Asian session trade but some of the enthusiasm wore off by the time London dealing came online. President Trump delayed an increase in tariffs by 15...

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EUR Outlook – How ECB Could Disappoint

EUR Outlook – How ECB Could Disappoint Daily FX Market Roundup Sept 11, 2019 Tomorrow’s European Central Bank monetary policy announcement is the most important event risk of the week and we are not surprised that EUR/USD broke below 1.10 ahead of this rate decision. Investors have big expectations for this meeting because of widespread deterioration in the Eurozone economy and talk of recession in Germany. Euro hit a 2-year low last week against the US dollar as German bund yields...

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EURUSD Wobbles as ECB May Do More Harm than Good

Market Drivers September 11, 2019 Euro starts to weaken USDJPY at fresh highs Nikkei 0.96% Dax 0.94% UST 10Y 1.72% Oil $58/bbl Gold $1493/oz BTCUSD $10,000 Europe and Asia: No Data North America: USD PPI 8:30 The euro was starting to wobble in early European dealing today as the pair once again drifted towards the key 1,1000 level ahead of the very important ECB rate decision tomorrow. In an otherwise quiet session with little news flow, the EURUSD was markedly weaker trading near the...

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Risk Flows Cool Off in FX

Market Drivers September 10, 2019 UK Labor beats Chinese inflation a bit hotter Nikkei 0.35% Dax -0.33% UST 10Y 1.62% Oil $57/bbl Gold $1495/oz BTCUSD $10295 Europe and Asia: CNY CPI 2.8% vs. 2.7% GBP UK Labor 3.8% vs. 3.9% GBP UK Wages 3.8% vs. 3.7% North America: CAD Housing Starts FX markets were quiet on the second trading day of the week with little fresh newsflow to move currencies as the Brexit drama took a pause while econ data was limited to UK labor releases. UK employment...

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FX: Beginning of the Week Recovery in Risk

FX: Beginning of the Week Recovery in Risk Daily FX Market Roundup Sept 9, 2019 All of the major currencies recovered today in what was a quintessential recovery in risk appetite. USD/JPY rose above 107 on the back of higher bond yields and US equities. Despite Friday’s lackluster jobs report and the lack of US data on Monday, 10 year Treasury yields rose above 1.6%. Investors were moved by the People’s Bank of China’s decision to lower its reserve requirement ratio by 50bp. This...

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Pound Wobbles on Brexit Waffles

Market Drivers September 9, 2019 BoJo ignores Parliament law Aussie recovers open gap Nikkei 0.56% Dax 0.26% UST 10Y 1.58% Oil $57/bbl Gold $1506/oz BTCUSD $10240 Europe and Asia: GBP UK GDP North America: No Data It was another rollercoaster ride for pound as the week started off more Brexit drama. Over the weekend sources close to the PM suggested that he would ignore the current Parliament law that mandated Mr. Johnson to ask for an extension if no deal was done by the deadline. One...

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USD/CAD Crashes on Cool NFPs and Hot Canadian Labor

USD/CAD Crashes on Cool NFPs and Hot Canadian Labor Daily FX Market Roundup Sept 6, 2019 Today’s non-farm payrolls report ended having very little impact on the US dollar. The greenback traded lower at the onset but recovered higher by the end of the NY session. According to the latest report, job growth slowed in August but average hourly earnings growth accelerated. Only 130K jobs were created, down from 159K but earnings grew at a 0.4% pace versus 0.3% in July. This was the...

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