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Tag Archives: Australian Outlook

FX Risk Aversion Deepens – What to Expect Next Week

FX Risk Aversion Deepens – What to Expect Next Week Daily FX Market Roundup 06.18.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Currencies and equities extended their sell-off on Friday as risk aversion in the financial markets deepened. The Dow Jones Industrial Average over 400 points for the tenth straight day. Today’s decline was the biggest one day slide since February. The market heard the Federal Reserve loud and clear this week and are preparing...

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USD/JPY Pulls Back but Dollar Bulls in Control

USD/JPY Pulls Back but Dollar Bulls in Control Daily FX Market Roundup 06.17.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Investors continued to buy U.S. dollars on Thursday despite weaker than expected Philadelphia Fed manufacturing index and jobless claims. Market participants are convinced that these disappointments will fade as the economy improves because the Federal Reserve’s upgraded economic projections gave everyone the confidence that the...

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Are the Dollar’s Post FOMC Gains Sustainable?

Are the Dollar’s Post FOMC Gains Sustainable? Daily FX Market Roundup 06.16.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Investors drove the U.S. dollar sharply higher on Wednesday after the Federal Reserve signaled an earlier interest rate hike. Thirteen out of eighteen policymakers now see as many as two rate hikes by the end of 2023. In March, only seven members saw a move in 2023 with the majority looking for rates to remain unchanged into 2024. This...

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FOMC Preview – Taper Talk and Impact on Dollar

FOMC Preview – Taper Talk and Impact on Dollar Daily FX Market Roundup 06.15.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The outcome of Wednesday’s Federal Reserve monetary policy announcement could set the stage for how the U.S. dollar and currencies trade over the next month. With that in mind, the greenback maintained its bid ahead of rate decision. USD/JPY hovered near 2 month highs above 110 as EUR/USD held below 1.2150. Today’s U.S. economic...

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Bond Yields Soar but the Dollar Struggles to Follow

Bond Yields Soar but the Dollar Struggles to Follow Daily FX Market Roundup 06.14.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Treasury yields traded sharply higher on Monday ahead of the Federal Reserve’s monetary policy announcement. The 2.7 percent rally in ten year yields and decline in the Dow Jones Industrial Average reflects the market’s belief that the central bank will begin discussions about reducing purchases this week. Typically, taper talk...

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Dollar Soars as Investors Cue into FOMC

Dollar Soars as Investors Cue into FOMC Daily FX Market Roundup 06.11.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The U.S. dollar ended the week higher against all of the major currencies with today’s rally a delayed reaction to Thursday’s inflation report. Stronger than expected consumer confidence also helped to boost demand for U.S. dollars ahead of next week’s Federal Reserve monetary policy announcement. U.S. policymakers have insisted that the...

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EURO Unfazed by US CPI and ECB Steadiness

EURO Unfazed by US CPI and ECB Steadiness Daily FX Market Roundup 06.10.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management There were no fireworks for the U.S. dollar today despite the biggest jump in U.S. inflation since August 2008. Normally, the greenback would spike on a sharp rise in consumer prices but it ended the day lower against most major currencies. A hot CPI report was widely anticipated but also consistently downplayed by Federal Reserve...

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Big Day Ahead of EURO – What to Expect from ECB

Big Day Ahead of EURO – What to Expect from ECB Daily FX Market Roundup 06.09.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Euro has a big day ahead with a monetary policy announcement and U.S. inflation report on the calendar. Between these two events, the European Central Bank meeting is generally more market moving but the U.S. dollar shot higher at the equity open, recovering earlier losses ahead of CPI release. There’s little doubt that inflation is...

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Dollar Rally Fizzles as NFP Disappointment

Dollar Rally Fizzles as NFP Disappointment Daily FX Market Roundup 06.04.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The U.S. jobs report was a major disappointment and the dollar fell sharply against all of the major currencies in response as 10 year Treasury yields slipped nearly 4%. Turns out, the decline in consumer confidence, lower service and manufacturing ISM employment measures were the most telling leading indicators for non-farm payrolls....

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Dollar Soars Ahead of Payrolls but Can the Rally Last?

Dollar Soars Ahead of Payrolls but Can the Rally Last? Daily FX Market Roundup 06.03.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The U.S. dollar traded sharply higher against all of the major currencies on Thursday with USD/JPY closing above 110 for the first time since April which is a sign that investors are positioning for a strong report. Last month’s jobs number was abysmal with U.S. companies adding only 266K new workers. Economists are looking for...

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