Tag Archive: $JPY

A Word on Q3 COFER-It Might not be What You Think

2019-01-02

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2019-01-02

Foreign Exchange Reserves by Currency, Q1 2016 - Q3 2018
The IMF offers the most authoritative report on central bank reserves on a quarterly basis with a quarter lag.  The report, the Currency Composition of Official Foreign Exchange Reserves (COFER), covering Q318 has been released.  It may be have been overlooked during the holidays, but if and when the pundits see it, the leading takeaway is that the dollar's share of global reserves fell below 62% for the first time five years.

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Week Winding Down on Firm Note, but Wild Ride may Not Be Over

2018-12-29

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2018-12-29

The biggest reversal in the S&P 500 since 2010, allowing it to string the biggest two-day rally in three years helped lift Asian and European shares today. All the Asia-Pacific equity markets advanced today but Japan, where the strength of the yen saw the Nikkei and Topix buck the move. European equities.

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Forex Forensics: The Case of the Yen

2018-12-22

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2018-12-22

Over the past five sessions, the yen is the strongest of the major currencies, appreciating about 1.7% against the US dollar, eclipsing the Swedish krona, which rallied strongly today after the Riksbank's surprise rate hike.  Given the sell-off in equities and the decline in markets, the yen's strength is not surprising. 

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FX Daily, December 21: Markets Stumble into the Weekend

2018-12-21

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2018-12-21

Overview: There is little reprieve from the equity meltdown ahead of the weekend. Major markets in the Asia-Pacific region, including Japan, China, India, and Australia pushed lower. The MSCI index of the region is near 15-month lows. The Dow Jones Stoxx 600 is off about 0.6% near midday in London to make new two-year lows. US shares are also trading lower in Europe.

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FX Daily, December 20: Stocks Slump and the Dollar Slides as Market Concludes Fed is Mistaken

2018-12-20

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2018-12-20

Overview:  Once again the US equity market failed to hold on to even minimal upticks.  The sharply lower close spurred follow-through selling in global equities.  Few have been spared the wrath of investors who apparently were disappointed with the Fed and its reluctance to consider stopping the balance sheet unwind. 

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FX Daily, December 19: The Fed’s Paws may Still Unsettle Investors

2018-12-19

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2018-12-19

Overview:  The failure of the S&P 500 to sustain even modest upside momentum yesterday is keeping traders on edge today, though another attempt on the upside is likely.  Asian equities were mixed, with Chinese and Japanese shares lower.  The Nikkei closed below the 21000 support level. 

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FX Daily, December 18: Stock Rout Deepens, Casts Shadow over Holiday Spirit

2018-12-18

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2018-12-18

Overview: The 2% slide in the S&P 500 to new lows for the year yesterday hit Asian and European equities today. Bond yields are lower, and the dollar is softer against most major currencies. The dramatic equity losses and some disappointing data sparked doubts about the ability of the Fed to raise rates tomorrow at the conclusion of its last meeting of the year.

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FX Daily, December 17: Markets Quiet to Start Fed Week

2018-12-17

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2018-12-17

Activity in the global capital markets is subdued as investors move to the sidelines as the year-end approaches. The Federal Reserve headlines the holiday week that also features a Bank of England a Bank of Japan meeting. Only the Fed is expected to change rates.

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FX Daily, December 14: Week Closing on a Disappointing Note

2018-12-14

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2018-12-14

Overview:  A string of disappointing economic is spurring risk-off sentiment today.  Global shares prices are being punished and core bonds are being snapped up.  The US dollar is trading higher against most major and emerging market currencies.  The MSCI Asia Pacific Index was flat on the week coming into today's session.

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FX Daily, December 13: May Survives but its Draghi’s Day

2018-12-13

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2018-12-13

Overview: There is a sense of optimism among investors today that may be tested as the session progresses. News that China may reconsider its "Made in China 2025" initiative as an apparent concession to the US while reports suggest it has bought 1.5-2.0 mln tons of soy is easing trade tension fears. 

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FX Daily, December 12: Markets Calm on May Day

2018-12-12

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2018-12-12

The US S&P 500 failed to sustain the early upside momentum, but global equities are moving higher today, and there is some optimism on the trade front. Emerging market equities and currencies are also doing well today.

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FX Daily, December 11: Fragile Calm Threatens to Break Out

2018-12-11

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2018-12-11

Indications that US and Chinese trade talks are proceeding, coupled with a dramatic reversal in the S&P 500 yesterday is helping stabilize the capital markets today. Asian equities were mixed, but the Greater China (China, Hong Kong, and Taiwan markets) alongside India and Australia posted modest gains.

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FX Daily, December 10: Lack of Closure Weighs on Sentiment

2018-12-10

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2018-12-10

Investors angst over trade tensions and Brexit continue remains elevated, and poor Chinese and Japanese economic news played on global growth fears. Equities continue to slog lower. Bond yields are little changed, and the dollar is lower against most of the major currencies.

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FX Daily, December 07: A Couple More Events before Seeing the End of Difficult Week for Investors

2018-12-07

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2018-12-07

Overview: Global equities have stabilized after US equities recovered yesterday, with the NASDAQ 100 staging its biggest reversal in eight months and the S&P500 recouped almost three percent to close 0.15% lower. Asia Pacific equities were mostly higher. Hong Kong shares, including the mainland shares that trade there, were the notable exception.

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FX Daily, December 06: New Spanner in US-China Relations Weighs on Risk Appetites

2018-12-06

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2018-12-06

Overview: The global capital markets were fragile amid trade uncertainty and economic slowdown fears. News that Canada arrested the CFO of Huawei on behalf of the US, ostensibly for violating the embargo against Iran triggered an almost immediate risk-off wave that has extended the equity markets losses, sending core bond yields lower, with the US 10-year slipping below 2.9%, and underpinning the dollar against most currencies, with the notable...

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FX Daily, December 05: US Market Closure may be a Firebreak

2018-12-05

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2018-12-05

The 3%+ drop in the S&P 500 yesterday kept global equities under pressure today, though losses in Asia and Europe were milder. In Asia, only Hong Kong and Taiwan benchmarks lost more than 1%. In Europe, the Dow Jones Stoxx 600 is off about 0.8% in late morning turnover.

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FX Daily, December 04: Stock Rally Arrested, but Bond and Oil Advance Continues, leaving Dollar in a Lurch

2018-12-04

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2018-12-04

Overview: Equity markets are unable to build on yesterday's advance, but bonds and oil are extending gains. The dollar remains on the defensive and is off again all the major currencies. The lack of a joint statement over the weekend by the US and China and seemingly different interpretations of what was agreed leaves investors in a lurch.

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FX Daily, December 03: G20 Fan Animal Spirits

2018-12-03

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2018-12-03

The US and China kept their trade guns cocked at each other but offered the last opportunity for a negotiated settlement before escalation. What is billed as a 90-day freeze on tariff increases is really only 60 days beyond January 1 when Trump had threatened to increase the 10% tariff on $200 bln of Chinese goods to 25%.

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FX Weekly Preview: Dramatic Week Ends with Whimper?

2018-12-03

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2018-12-03

There is an eerie calm in the capital markets today as the G20 meeting gets underway. There is much uncertainty, and the event calendar is chock full next week, with the Brexit debate getting underway in the UK Parliament, the CDU picks a new leader to replace Merkel, possible partial US government closure, Powell's testimony before Congress, OPEC+ meeting, and US employment data.

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FX Daily, November 28: Powell Awaited

2018-11-28

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2018-11-28

Overview:  Global capital markets are relatively calm as investors gird for drama.  The Bank of England reports its assessment of the impact of Brexit and the stress tests a little before Fed Chair Powell speaks at midday in NY.  The G20 meeting begins Friday, and several bilateral meetings are taking the spotlight from the larger gathering. 

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