Thursday , August 22 2019
Home / Tag Archives: Canada / New Zealand

Tag Archives: Canada / New Zealand

FX: Getting a Sugar High from Talk of Stimulus?

FX: Germany, US, China All Talk Stimulus Daily FX Market Roundup August Investors are dipping their toes back into US assets. Stocks traded higher for the third day in a row, Treasury yields rebounded off their lows and the greenback started the week stronger against all of the major currencies. These moves had nothing to do with data as there are no major US economic reports on the calendar this week. Instead currencies continue to be driven by headline risk and the prospect of fiscal...

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Will EUR/USD Break 1.10?

Will EUR/USD Break 1.10? Daily FX Market Roundup August It has been a great week for the US dollar which recovered against all of the major currencies with the exception of sterling, which coasted on stronger UK data. The dollar’s rally was driven primarily by better than expected US data. Retail sales doubled expectations while year over year CPI growth edged closer to the central bank’s 2% target. These reports validate Fed Chairman Jerome Powell’s recent comments about the...

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USDJPY Drops as US Data Beats but Fed Still Needs to Ease

USDJPY Drops as US Data Beats but Fed Still Needs to Ease Daily FX Market Roundup August The most important piece of US data scheduled for release this week was retail sales and even though consumer spending doubled expectations, investors shrugged off the news. For our readers, this should not be a surprise because yesterday we said nothing matters more than trade tensions, recession risks and global uncertainty. Even if consumer spending soars, the Federal Reserve will still need to...

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US Yield Curve Inversion – What it Means for You, Markets & FX

US Yield Curve Inversion – What it Means for You, Markets & FX Daily FX Market Roundup August 14, 2019 Most people have a simple and basic understanding of what a yield curve inversion means. They know that it is unusual and every headline tells them that its bad news for the economy. Some are even aware that when a yield curve inverts, long-term interest rates fall below short-term interest rates as investors require greater return for locking up their funds for 2 vs. 10 years....

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Trump Delays China Tariffs, How Durable is the Bottom in FX?

Trump Delays China Tariffs, How Durable is the Bottom in FX? Daily FX Market Roundup August 13, 2019 Currencies and equities raced higher after President Trump said he would delay tariffs on Chinese imports. He said “We’re doing this for the Christmas season. Just in case some of the tariffs would have an impact on U.S. customers.” Based on these comments, this overture is not a result of progress in US-China trade talks but instead pressure from US businesses. Regardless investors saw...

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Don’t Buy these 3 Currencies

Don’t Buy these 3 Currencies Daily FX Market Roundup August 12, 2019 This week’s calendar is a jammed with market moving economic data but these releases will not alter the current trends in the market. For example, USD/JPY is very weak – it has been falling for seven out of the last eight trading days and is trading at its lowestt level in 7 months. This decline reflects the anxiety in the markets and the expectation for a response from the central bank. It is also reinforced by the...

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When Will USDJPY Break 105?

When Will USDJPY Break 105? Daily FX Market Roundup August 9, 2019 It has been a very busy week for President Trump. On Sunday, he announced fresh tariffs on China, on Tuesday he ordered the Treasury to label China a currency manipulator, on Thursday he blasted the government’s strong dollar policy and on Friday, he said the US is not going to do business with Huawei and called on the Fed to lower interest rates by a full percentage point. Although it was later clarified that he meant...

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Why Trump Can’t Afford to Intervene in the Dollar

Why Trump Can’t Afford to Intervene in the Dollar Daily FX Market Roundup August 8, 2019 Volatility wise, it was a relatively quiet day in the forex market. USD/JPY extended its losses but the greenback recovered against euro, sterling and other major currencies. The rallies in the Australian and New Zealand dollars were the strongest with both currencies experiencing their biggest one-day rally in 3 weeks versus the dollar. While there were no US economic reports released today, the...

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BOOM! – RBNZ Cuts 50bps

Market Drivers August 7, 2019 RBNZ cuts by 50bps German IP -1.5% vs. 0.5% Nikkei -0.33% Dax 1.33% UST 10Y 1.68% Oil $53/bbl Gold $1487/oz BTCUSD $11600. Europe and Asia: RBNZ cut 50bp vs. 25bp North America: CAD Ivey PMI 8:30 The Reserve Bank of New Zealand shocked the market by cutting rate by 50bps rather than the forecast 25bps instantly sending the kiwi lower by one big figure as the currency dropped below the .6400 level before recovering slightly by mid-morning London trade....

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Will the RBNZ Cut Rates? Implications of China Currency Manipulator Label

Will the RBNZ Cut Rates? Implications of China Currency Manipulator Label Daily FX Market Roundup August 6, 2019 The US government looked the other way for the past 25 years but under President Trump’s watch that is no longer be the case. For the first time since 1994, the US Treasury labeled China a currency manipulator. China responded by denying “any use of the exchange rate as a tool to deal with trade disputes” and blasted the US for taking action that would “severely damage...

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