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Tag Archives: Currency Focus

Trump Ends US Shutdown But That Won’t Help the Dollar

Trump Ends US Shutdown But That Won’t Help the Dollar Daily FX Market Roundup Jan 25, 2019 After being shutdown for 35 days, President Trump announced on Friday that a deal has been reached to reopen the government for 3 weeks until February 15th. In this time, he expects both Democrats and Republicans to work together on a Homeland Security package that will include funding for border walls. The agreement will include back pay for furloughed workers, which is good news but the debate on...

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Will ECB Send EUR Below 1.13? Plus Battle in Washington Heats Up

Will ECB Send EUR Below 1.13? Plus Battle in Washington Heats Up Daily FX Market Roundup Jan 23, 2019 The next 24 hours should be an interesting one for the forex market as investors tune into the European Central Bank’s monetary policy announcement and a pair of Senate votes that could end the government shutdown. The day starts with the ECB meeting at 7:45AM ET / 12:45 GMT and follows with the Senate votes around 2:30pm ET / 19:30 GMT. For the first time in nearly 2 weeks, euro...

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Dollar – Feeling the Pain of Rising Rates and Trade Tensions

Dollar – Feeling the Pain of Rising Rates and Trade Tensions Daily FX Market Roundup Jan 22, 2019 For the first time since the U.S. government shutdown the S&P 500 closed in negative territory. This decline coincided with weakness in most of the major currencies. Although it would be easy to attribute the deterioration in sentiment and decline in stocks to the larger than expected drop in existing home sales, equity futures were negative well before the data was released. With the...

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Behind USD Rise and 3 Options for Brexit Plan B

Behind USD Rise and 3 Options for Brexit Plan B Daily FX Market Roundup Jan 18, 2019 The U.S. dollar traded higher against all of the major currencies today with the exception of the Canadian dollar because as it turns out, the U.S. government shutdown has been good for the dollar and stocks. Outside of the decline on the first day of 2019 trade, there has not been a down day for the Dow or S&P. But don’t mistaken the government shutdown is not actually positive for U.S. assets....

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Some Quick Notes on Post Brexit Vote Trade

Some Quick Notes on Post Brexit Vote Trade by Kathy Lien, Managing Director of FX Strategy Daily FX Market Roundup Jan 16, 2019 Prime Minister May’s Brexit deal suffered a big defeat yesterday in Parliament. She lost by 230 votes, which was her worse case scenario. Instead of falling however GBP surged on the decision and is trading well above 1.28. As BoE Governor Carney pointed out this morning, the rebound in the currency reflects expectations that Article 50 will be extended and...

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GBP – How to Trade the Brexit Vote

GBP – How to Trade the Brexit Vote Daily FX Market Roundup Jan 14, 2019 For the next 48 hours, there’s nothing more important than the Brexit vote. Members of Parliament will begin voting on Prime Minister May’s withdrawal agreement at 7pm London time on Tuesday. There is no specific time for the vote to end, but it should happen in the late North American or early Asia session. At this point, May is expected to lose by a margin big enough to force her to seek an Article 50 extension....

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Why Its Not a Good Time to Buy Dollars

Why Its Not a Good Time to Buy Dollars Daily FX Market Roundup Jan 11, 2019 By Saturday, the U.S. government will be in the midst of its longest shutdown ever and while this stoppage to government activity is gripping politicians and the media, the impact on the financial markets have been limited. U.S. stocks recovered throughout the past week, volatility declined and the greenback, which fell hard at the end of the year is stabilizing. For the most part, it was a quiet week in the...

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Why USDCAD Could U-Turn on Bank of Canada Announcement

Why USDCAD Could U-Turn on Bank of Canada Announcement Daily FX Market Roundup Jan 7, 2019 Of all the major currencies, the Canadian dollar performed the best in these first few days of 2019. Between January 2nd and January 8th, USD/CAD dropped 2.5%, giving up a third of the past 2 months gains. A strong labor market, decline in the U.S. dollar, recovery in risk and rebound in oil prices all played a role in the pair’s steep decline but the move could come to a screeching halt after...

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EURO – What Will Drive it Above 1.15?

EURO – What Will Drive it Above 1.15? Daily FX Market Roundup Jan 7, 2019 Over the past 30 days, nothing has been more influential to currencies than risk appetite and equities. As the first full week of 2019 trade begins, this correlation continues to drive FX flows with the Dow up another 98 points after Friday’s more than 700 point gain. The one thing that we learned from Fed Chair Powell at the start of the month is that despite strong job growth, the central bank is no rush to...

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Forget NFP. Fed Powell Crushes USD and Cements AUD & CAD Bottoms

Forget NFP. Fed Powell Crushes Dollar and Cements AUD & CAD Bottoms Daily FX Market Roundup Jan 4, 2019 After a week like the one we’ve had, everyone is wondering if 2019 will be a year where 500+ point daily moves in the Dow and 100 pip rollercoaster rides in currencies become the norm. Although the moves in FX don’t seem significant, on an intraday basis the swings have been wild. The year started with a warning that slower Chinese demand took a big bite out of sales in the fourth...

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