Thursday , April 2 2020
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Tag Archives: Featured

FX Traders Should Brace for a Volatile Q2

FX Traders Should Brace for a Volatile Q2 Daily FX Market Roundup March 31, 2020 The first quarter of 2020 was the worst first quarter in the 135 year history of the Dow and modern day humanity is finally over. COVID-19 reared its ugly head in the last 3 months, hitting China first and then Europe and now the US. Stocks and commodities took the brunt of the selling with the Dow Jones Industrial Average losing more than 20% of its value and oil falling 60%. European stocks were hit hard...

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Will Consumer Confidence Bring Down The Market?

March 31, 2020 Chinese PMIs surprise to the upside Risk Rally stalls Nikkei -0.88% Dax 1.22% UST 10Y 0.69% Oil $21/bbl Gold $1601/oz BTCUSD $6446 Asia and the EU CNY Manufacturing PMI 52 vs. 35 North America Open USD Chicago PMI 09:45 USD Consumer Confidence 10:00 Markets were mildly up in Asia and early European trade but gave up most of their gains ahead of the US open as investors turned cautious into North American session. In Asia sentiment was boosted by news that Chinese PMI...

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Euro Halts 6 Day Run – More Losses Ahead?

Euro Halts 6 Day Run – More Losses Ahead? Daily FX Market Roundup March 30, 2020 Euro snapped a 6 day rally to start the week lower against the US dollar. Over the past month, the moves in EUR/USD have not been for the faint of heart. The single currency surged from a low of 1.0784 to a high just under 1.15 in less than 2 weeks as stocks plunged lower. The first wave of strength was driven by euro funded carry trade unwind. Then the pair peaked, falling just as quickly and more sharply...

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Trump Relents on Timeline Markets Stabilize

March 30, 2020 Equities gap lower but stabilize Dollar bid once again Nikkei -1.57% Dax -0.17% UST 10Y 0.63% Oil $20/bbl Gold $1620/oz BTCUSD $6285 Asia and EU GBP UK Mortgage Approvals 73.5K vs 68.2K North America Open USD Pending Home Sales 10:00 President Trump relented on his timeline of returning to “normal” by Easter and suggested that the US should continue its social distancing policies until at least April 30. In his typical rambling presser that lasted more than an hour...

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Why “Return by Easter” is an Economic Pip Dream

March 27, 2020 Equities pull back Dollar finds a bid Nikkei -3.88% Dax -2.11% UST 10Y 0.771% Oil $22/bbl Gold $1622/oz BTCUSD $6640 Asia and EU No Data North America Open USD PCI 8:30 After a strong risk-on rally yesterday markets in Europe turned sour with index futures off by more than -2% in the morning dealing while the greenback strengthening again. European finance ministers failed to come up with a comprehensive pan- European plan to finance response to the coronavirus with...

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Dollar Tanks as Traders Worry about More Job Losses

Dollar Tanks as Traders Worry about More Job Losses Daily FX Market Roundup March 26, 2020 The US dollar traded lower against all of the major currencies today after jobless claims topped 3.2 million. We’ve never seen weekly jobless claims at these levels before – they are more than 4 times greater than the prior high set in October 1982 and double the 1.5 million forecast. In anticipation of this blowout report, Federal Reserve Chairman Jerome Powell gave a rare broadcast interview on...

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Weekly Jobless is the New NFP – Markets Remain Risk Off

March 26, 2020 Senate passes stimulus bill Jobless claims the new NFP Nikkei -4.51% Dax 1.86% UST 10Y 0.811% Oil $23/bbl Gold $1602/oz BTCUSD $6609 Asia and EU GBP UK UK Retail Sales -0.5% vs. -0.2% North America Open USD Weekly jobless claims Its been a quiet, almost sedate night of trade in financial markets in Asian and early Europeans sessions with equities only moving 1-2% and most FX pairs contained to 50bps ranges. Overnight, the US Senate passed the coronavirus bill and it looks...

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Will Jobless Claims Kill the Dollar Rally?

Will Jobless Claims Kill the Dollar Rally? Daily FX Market Roundup March 25, 2020 A deal is done. The White House and Senate agreed to a historic $2 trillion stimulus package and this agreement should pass the House easily. Equities and currencies traded sharply higher in response as investors applauded the speed of approval. The plan provides increased jobless benefits, direct payment to taxpayers and funding for businesses hit hard by COVID-19. This comes after aggressive monetary...

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Deal Done; Equities Extend Rally

March 25, 2020 Congress agrees on stimulus deal Equities extend rally Nikkei 8.04% Dax 4.26% UST 10Y 1.05% Oil $24/bbl Gold $1604/oz BTCUSD $6807 Asia and EU GBP UK CPI 1.7% EUR GE IFO 86.1 vs. 87.9 North America Open USD Durable Goods 8:30 With Senate in agreement on the stimulus deal and the House expected to pass the bill, markets were in ebullient mood in Asian and early European trade today with futures rallying between 2% to 3% on hopes that the $2 Trillion stimulus bill would...

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What’s Driving Dollar Higher Today?

What’s Driving Dollar Higher Today? Daily FX Market Roundup March 24, 2020 Many major currencies are trading higher this morning as stocks staged a voracious recovery at the NY open. The Dow Jones Industrial Average jumped over 1,000 points or 6.5%. In a normal market this would be considered a very bullish move but in bear markets, we often see these fierce rallies. Today’s recovery was driven by the prospect of a deal on the White House’s coronavirus virus stimulus bill. Speaker of the...

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