Tuesday , December 10 2019
Home / Tag Archives: Currency Movements (page 3)

Tag Archives: Currency Movements

Markets Consolidate as the Dollar Index Extends its Advance for the Sixth Consecutive Session

Overview: Investors are happy for the weekend.  Between the ECB, Brexit, and next week's FOMC, BOJ, and BOE meetings, the markets are mostly in a consolidative mode ahead of the weekend.  The first look at Q2 US GDP is the last important data point of the week, though it is unlikely to impact next week's Fed decision.  Russia is widely expected to join the rate-cutting central banks today with a 25 bp reduction in its key rate to 7.25%.  Asia Pacific equities mostly followed yesterday's...

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Poor PMI Weighs on Euro Ahead of ECB

Overview:  Disappointing flash PMI pushed an already offered euro lower ahead of tomorrow's ECB meeting. European bonds rallied and equities, amid a rash of earnings, is trying to extend the advance for a fourth consecutive session.  Italian and Spanish 10-year benchmark yields are off four-six basis points, while core bond yields are off two-three basis points.  Asian equities were mixed, with the biggest markets, including Japan, China, Hong Kong, and Australia advancing, while most...

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Debt Deal Help Lifts the Dollar

Overview: The gains in US equities and the apparent US budget agreement has underpinned equities today and the US dollar.  Asia Pacific equities recouped yesterday's losses, and Europe's Dow Jones Stoxx is posting gains for the third consecutive session, helped by some earning beats, to probe two-week highs.  US shares are firmer.  Benchmark 10-year yields are mixed with the Asia Pacific softer and European firmer.  Despite elevated political tensions in Italy, Italian bonds are bucking...

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Greenback is Mostly Firmer to Start New Week, while the Euro is Pinned near $1.12

Overview:  What promises to be an eventful two weeks has begun quietly.  The ECB, Fed, BOJ, and BOE will meet over the next fortnight. The central banks of Turkey and Russia meet this week and are expected to cut rates.  The UK will have a new Prime Minister.  The UK-Iranian seized each other ships, and the UK seeks a resolution.  Japan may remove South Korea from its preferred trading partners.  The US House of Representatives is set to go on the summer recess with the debt ceiling...

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Dollar Pares Losses as Market Partly Corrects Confusion of Magntiude and Timing of Fed

Overview: Comments underscoring the importance of acting preemptively by two Fed officials sent the dollar reeling and helped lift equities after the S&P fell to a two and a half week low.   The decline in rates and the US shooting down of an Iranian drone in the Gulf helped spur gold to new six-year highs.  There was some attempt to clarify the (NY Fed's) comments and the dollar has pared yesterday's losses. However, there has not been a return to the status quo ante.  Asia...

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Dollar on Back Foot as Equities Slide

Overview:  Profit-taking continues to weigh on global equities earnings concerns saw the biggest drop in the S&P 500 in three weeks.  The MSCI Asia Pacific Index fell for the fourth consecutive session.  The Nikkei gapped lower for the second straight session and has now retraced half of the gains scored since early June.  The Shanghai Composite is at its lowest level in a month.  Led by information technology, industrials, and energy, the Dow Jones Stoxx 600 is off by around 0.5%...

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Sterling Weakness Punctures Subdued Session

Overview: Summer in the northern hemisphere contributing to the subdued activity in the global capital markets. The MSCI Asia Pacific index stalled after a four-day advance, with Japanese, Chinese, and Australian equities offsetting gains in Taiwan, South Korea, and India.  Europe's Dow Jones Stoxx 600 is flattish, struggling to extend its three-day rally.  US shares are also little changed after the S&P 500 rose for the fifth consecutive session yesterday to new record highs.  It...

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Marking Time on Monday

Overview:   The new record highs in US equities ahead of the weekend coupled with Chinese data that suggested the economy was gaining some traction as Q2 wound down is helping underpin risk appetites to start the week.  Japanese markets were closed today, but equities were mostly firmer in the Asia Pacific regions, markets in China, Hong Kong, Taiwan, and India firmed.  Europe's Dow Jones Stoxx 600 was marginally higher through the morning session, and US shares also enjoyed a firmer...

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Near-Term Dollar Outlook: What the Charts may Say

The dollar had a challenging week.  The Chair of the Federal Reserve confirmed as much as possible a rate cut at the end of the month. The market understood this as a validation of its expectations and pushed the implied yield of the January 2020 fed funds futures contract down six basis points to 1.715%.  The low, and what we have suggested is peak dovishness, was 1.555% on June 20. As the central bank meetings are awaited later in the month, the most likely near-term scenario may be...

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Dollar’s Technical Tone Improves

It is not that the US dollar had a particularly good week.  It was mixed.  The best performers were sterling and the Canadian dollar. The pound led with a 1.6% gain, followed closely by the Canadian dollar.   The latest polls suggest that those who want the UK to remain in the EU have generally seen some gains in the polls.  Also, unwinding short cross positions against the euro, helped sterling get better traction against the greenback.  Firmer oil, better data, and a central bank that...

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