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Home / Tag Archives: Eurozone Outlook

Tag Archives: Eurozone Outlook

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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The Rebound in the Pound Continues

Market Drivers August 16, 2019 EUR hits a 2 week low Pound rises above 1.2100 Nikkei 0.06% Dax 0.96% UST 10Y 1.56% Oil $55/bbl Gold $1507/oz BTCUSD $10000 Europe and Asia: No data North America: USD Building Permits/Starts 8:30 USD U of M 10:00 Financial markets started the final day of the week in a decidedly better mood with risk on flows all across equity markets as sentiment stabilized a bit. The dollar was stronger against both the euro and the yen while commodity pairs held steady...

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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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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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Does 750 Point Dow Drop Equal 50bp Fed Cut?

Does 750 Point Dow Drop Equal 50bp Fed Cut? Daily FX Market Roundup August 5, 2019 There are 2 words to describe market sentiment right now – panic and fear. The Dow Jones Industrial Average dropped more than 700 points today, its biggest one-day slide in 2019. Last week President Trump announced new tariffs on China and overnight, China raised the stakes by allowing its currency to fall to a record low, breaching the 7.0 USD/CNY rate in the process. In addition to devaluing its...

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