Wednesday , May 27 2020
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FX Traders Bet on Reopenings & Vaccine

FX Traders Bet on Reopenings & Vaccine Daily FX Market Roundup May 27, 2020 The race for a COVID-19 vaccine is in high gear and as more companies leap into the effort, the rally in currencies and equities reflect the market’s hope for a medical solution to the worst economic and social crisis in modern history. It decimated the economy and claimed the lives of more than 350,000 people but with curves peaking and countries reopening, many investors hope that the worst is behind us....

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Don’t Worry Be Happy – Risk on Flows Roll On

SP takes out 3000 EU bond spreads compress Nikkei 2.55% Dax 0.62% UST 10Y 0.69 Oil $34/bbl Gold $1725/oz BTCUSD $8973 Asia and the EU No data North America Open US New Home Sales Risk on flows resumed with a vengeance as markets returned to full force today with SP500 futures taking out the 3000 level for the first time since the early days of March as investors bet on the resumption of the global economic activity while ignoring the brewing geopolitical risks. With most of the developed...

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China – How Much Trouble for FX?

China – How Much Trouble for FX? Daily FX Market Roundup May 22, 2020 China is once again a hot spot for geopolitical uncertainty and social unrest. This week China unveiled a plan to take a stronger stance on antigovernment protests and dissents in Hong Kong. They proposed new security laws that would punish opposition to the mainland. While the details have not been revealed, this would be a major blow to civil liberties and the city’s autonomy. The fear is that this would elicit a...

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Markets Wary as US-China Tensions Escalate

China make a poer grab for HK UK data all worse Nikkei -0.80% Dax -0.69% UST 10Y 0.65 Oil $32/bbl Gold $1733/oz BTCUSD $9089 Asia and the EU GBP UK Retail Sales -18% vs. -15% eyed North America Open CAD Retail Sales 8:30 It’s been a wary night of trade with risk-off flow dominating Asian and early Europen dealing as escalating tensions between US and China had investors on edge. The dollar was mildly bid across the board and US stock index futures were lower by about 50 basis points with...

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FX: China Worries Challenge Early Signs of Global Recovery

FX: China Worries Challenge Early Signs of Global Recovery Daily FX Market Roundup May 21, 2020 The US dollar traded higher against all of the major currencies today but its gains were modest as investors worry about ongoing US-China tensions. The Trump administration approved arms sales to Taiwan at the opposition of China and the Senate passed a bill that could delist Chinese companies from US exchanges if they cannot prove that they are not owned by the Chinese government. With that...

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All Eyes on US Weekly Unemployment Data

EZ PMI in line UK PMI data beats Nikkei 0.21% Dax -1.13% UST 10Y 0.67 Oil $34/bbl Gold $1733/oz BTCUSD $9363 Asia and the EU EUR EZ PMI 30.5 vs. 32 GBP UK PMI 27.8 vs. 25 North America Open USD Continuing Claims 8:30 CAD ADP 8:30 It’s been a quiet listless night of trade in both FX and equities with dollar slightly better bid on more elevated risk-off tones while equity futures were 50 basis points lower in early European dealing. On the eco calendar the PMI data out of Europe and UK...

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Recovery Signs Encourage Safe Haven Flows Out of Dollar

Recovery Signs Encourage Safe Haven Flows Out of Dollar Daily FX Market Roundup May 20, 2020 The US dollar is trading lower against all of the major currencies this morning. Stocks and 10 year Treasury yields perked up again on the back of strong results from Lowe’s and Target. Lowe’s reported 11.2% increase in same store sales in Q1 while Target said strong online shopping fueled 10.8% rise in same store sales last month. Results such as these reinforce the market’s view that the...

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Tide Turning for EURO?

Tide Turning for EURO? Daily FX Market Roundup May 19, 2020 Most of the major currencies powered higher today even though stocks gave up part of Monday’s gains. USD/JPY rose above 108 but ended the NY session closer to 107.75. In fact, early rallies faded as the day progressed with EUR/USD and USD/JPY coming off their highs. According to the latest economic reports, US housing market activity contracted further in the month of April with housing starts falling 30% and building permits...

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Risk On Rally Stalls -Again; Euro to 1.10?

Risk flows zig zag EU rescue fund quells fears Nikkei 1.49% Dax -0.40% UST 10Y 0.705% Oil $31/bbl Gold $1735/oz BTCUSD $9774 Asia and the EU EUR EU ZEW 51 vs. 32 North America Open No Data After yesterday’s strong risk-on rally that saw equities commodities and high beta currencies all rise, today’s price action was decidedly more cautious as markets failed to have much follow-through. Yesterday’s triple whammy of positive news that included the possible development of COVID vaccine, the...

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Currencies Rally as Stocks Soar on Vaccine, Powell Optimism

Currencies Rally as Stocks Soar on Vaccine, Powell Optimism Daily FX Market Roundup May 18, 2020 Investors have a number of reasons to feel optimistic at the start of this new trading week and their positive sentiment is reflected in the strong moves in equities and currencies. First and foremost, Moderna Therapeutics, an American biotech company reported very positive early stage human trial coronavirus vaccine results. All 45 participants who received the vaccine produced COVID-19...

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