Thursday , August 22 2019
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Tag Archives: Home Page Champion Post

FX: Getting a Sugar High from Talk of Stimulus?

FX: Germany, US, China All Talk Stimulus Daily FX Market Roundup August Investors are dipping their toes back into US assets. Stocks traded higher for the third day in a row, Treasury yields rebounded off their lows and the greenback started the week stronger against all of the major currencies. These moves had nothing to do with data as there are no major US economic reports on the calendar this week. Instead currencies continue to be driven by headline risk and the prospect of fiscal...

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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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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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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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Markets Crash, Consequences of Trump’s Newest Tariffs

Markets Crash, Consequences of Trump’s Newest Tariffs Daily FX Market Roundup August 1, 2019 When we look back at this busy week nothing may matter more than news bombs and headline risk. Today, President Trump sent currencies and equities crashing lower by hitting China with an additional 10% tariff on $300B in Chinese imports starting next month. He said that while trade talks resumed and China promised to buy large amounts of agricultural products from the U.S., they “did not do so”...

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