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Tag Archives: Europe

EUR, NZD, AUD Crash Lower After US Retail Sales

EUR, NZD, AUD Crash Lower After US Retail Sales Daily FX Market Roundup June 14, 2019 This has been a great week for the US dollar and the US retail sales report was the icing on the cake. The greenback soared against all of the major currencies after Friday’s release showed consumer spending rising 0.5% in the month of May. This was slightly lower than expected but excluding gas and auto sales, retail sales beat expectations. Yet the main reason why the dollar took flight was because...

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Exchange’s IT malfunction sends jitters through European spot power markets

One week ago, European spot power exchange EPEX Spot was hit with an issue any financial platform would want to avoid. Technical problems led to a series of server crashes, forcing the exchange to launch back-up auction procedures. This resulted in Belgian power prices spiking to over Eur2,000/MWh. During EPEX Spot’s preliminary auction at mid-day London time on June 7, the Belgian day-ahead baseload power contract reached EUR2,233.39/MWh. The auction was then cancelled due to the technical...

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FX: How US Retail Sales Could Rock the Market

FX: How US Retail Sales Could Rock the Market Daily FX Market Roundup June 13, 2019 Friday’s US retail sales report is one of the most important pieces of data on this week’s economic calendar. The Federal Reserve meets next week and this number will play a crucial role in shaping expectations for the central bank’s forward guidance. Economists are looking for a recovery in spending but there are plenty of reasons why the data could miss. First and foremost, labor market gains are...

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EUR – How Much will EZ Industrial Production Hurt?

EUR – How Much will EZ Industrial Production Hurt? Daily FX Market Roundup June 12, 2019 The Eurozone’s industrial production report is typically not a big market mover for the euro but the currency has been trading in a tight range for the past 3 days and its inability to extend higher could make Thursday’s report more market moving than usual. Given the sharp drop in German industrial production, Eurozone industrial production will not only fall for the third month in a row but the...

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Take the (Night) Train

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans. Just finished reading Agatha Christie’s Murder on the Orient Express and am planning an upcoming European trip, so trains – particularly those that rumble along at night – are currently much on my mind. Yesterday’s New York Times featured a piece on how environmental concerns about flying are reviving interest in night trains, Once Threatened,...

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In FX Risk Sentiment Sours – USDJPY Eyes 108.00

Market Drivers June 12, 2019 HK protests turn to riots US CPI on deck Nikkei -0.35% Dax 0.92% UST 10Y 2.13% Oil $52/bbl Gold $1336/oz. Europe and Asia: No data North America: USD CPI 8:30 It’s been a generally quiet night in FX with no major news releases in either Asia or London session, but risk sentiment has clearly turned sour as protests in HK have turned into full-fledged riots pressuring USDJPY back towards the 108.00 figure. The standoff between HK legislature and protesters...

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In FX Risk-on is On

Market Drivers June 11, 2019 UK labor data beats Cap Nikkei 0.33% Dax 1.12% Oil $53/bbl Gold $1321/oz. Europe and Asia: GBP UK Average Earnings 3.1% vs. 2.9% GBP UK Claimant Count 23.2K vs. 12.3K North America: USD PPI 8:30 USD Economic Optimism 10:00 Much better risk inflows supported by higher equities in both Asia and Europe helped keep USDJPY bid with the pair hitting session highs just below the 108.70 level ahead of the New York open. President Trump continued to make positive...

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3 Reasons Why USDJPY is Headed Lower

3 Reasons Why USDJPY is Headed Lower Daily FX Market Roundup June 10, 2019 We kicked off the new week with renewed demand for US assets. The S&P 500 extended last week’s gains as the greenback traded higher against all of the major currencies. By sparing Mexico punitive tariffs and US corporations, a major threat to earnings, the immigration agreement between the US and Mexico provided a big boost for risk appetite. The US dollar benefitted the most because next to Mexico, the...

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GBPUSD Dumps While USDJPY Pumps

Market Drivers June 10, 2019 UK data disappoints Cap open in USDJPY Nikkei 1.20% Dax 0.77% Oil $53/bbl Gold $1326/oz. Europe and Asia: GBP UK GDP -0.4% vs. -0.1% GBP UK MP -3.9% vs. -1.1% North America: No data Latest UK economic data missed the mark by a wide margin showing a serious deterioration in business activity sending cable back below the 1.12700 figure in morning London dealing. UK eco news missed on all fronts with GDP contracting 0.4% versus 0.1% while Manufacturing...

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EUR: 3 Things to Expect from ECB

EUR: 3 Things to Expect from ECB Daily FX Market Roundup June 5, 2019 Tomorrow’ European Central Bank monetary policy announcement will be a big one. EUR/USD rallied for 4 days straight this week but the sellers are returning ahead of the rate decision. The 3 things to expect from the ECB this month include: 1. Details on their new Targeted Long Term Refinancing Operation 2. Updated economic projections 3. New Forward Guidance Back in March, the ECB announced a series of new loans that...

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