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Tag Archives: Asia Outlook

Dollar Rallies on Hawkish Fed Cut, 3 More Rate Decisions Ahead

Dollar Rallies on Hawkish Fed Cut, 3 More Rate Decisions Ahead Daily FX Market Roundup Sept 17, 2019 For the second time this year, the Federal Reserve lowered interest rates by 25bp to a range of 1.75% to 2%. This widely anticipated move failed to hurt the dollar, which ended the NY session up against all of major currencies. Today’s move by the Fed was a hawkish hike where two members voted against easing. To everyone’s disappointment, Fed Chairman Jerome Powell provided limited...

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Why is the Dollar So Strong Ahead of a Rate Cut?

Why is the Dollar So Strong Ahead of a Rate Cut? Daily FX Market Roundup Sept 17, 2019 Tomorrow’s Federal Reserve monetary policy announcement is the biggest event risk of the week and while the central bank is widely expected to lower interest rates for the second time this year, USD/JPY is trading at its strongest level in more than a month. Typically interest rate cuts drive currencies lower, but as we saw with last week’s European Central Bank meeting when the euro bottomed after...

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Why Investors are Nervous Ahead of FOMC

Why Investors are Nervous Ahead of FOMC Daily FX Market Roundup Sept 16, 2019 There are four central bank monetary policy announcements on the calendar this week but the Federal Reserve’s is hands down the most important. On Friday we talked at length about what to expect for FOMC and we’ll touch on that again tomorrow, the eve before the Fed meeting. However for now, we’d like to discuss the broad based rally in the US dollar. The greenback strengthened against all of the major...

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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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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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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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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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US Dollar Outlook – 5 Reasons why Payrolls Could Disappoint

US Dollar Outlook – 5 Reasons why Payrolls Could Disappoint Daily FX Market Roundup Sept 5, 2019 Based on the rally in the US dollar today, investors are betting on a strong jobs report. The greenback ended the day sharply higher against the Japanese Yen and Swiss Franc while recovering its losses against other major currencies. Non-farm payrolls are scheduled for release tomorrow and economists are looking for job growth to ease slightly to 160K from 164K the previous month. Investors...

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