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Tag Archives: UK Outlook

China – How Much Trouble for FX?

China – How Much Trouble for FX? Daily FX Market Roundup May 22, 2020 China is once again a hot spot for geopolitical uncertainty and social unrest. This week China unveiled a plan to take a stronger stance on antigovernment protests and dissents in Hong Kong. They proposed new security laws that would punish opposition to the mainland. While the details have not been revealed, this would be a major blow to civil liberties and the city’s autonomy. The fear is that this would elicit a...

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FX: China Worries Challenge Early Signs of Global Recovery

FX: China Worries Challenge Early Signs of Global Recovery Daily FX Market Roundup May 21, 2020 The US dollar traded higher against all of the major currencies today but its gains were modest as investors worry about ongoing US-China tensions. The Trump administration approved arms sales to Taiwan at the opposition of China and the Senate passed a bill that could delist Chinese companies from US exchanges if they cannot prove that they are not owned by the Chinese government. With that...

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All Eyes on US Weekly Unemployment Data

EZ PMI in line UK PMI data beats Nikkei 0.21% Dax -1.13% UST 10Y 0.67 Oil $34/bbl Gold $1733/oz BTCUSD $9363 Asia and the EU EUR EZ PMI 30.5 vs. 32 GBP UK PMI 27.8 vs. 25 North America Open USD Continuing Claims 8:30 CAD ADP 8:30 It’s been a quiet listless night of trade in both FX and equities with dollar slightly better bid on more elevated risk-off tones while equity futures were 50 basis points lower in early European dealing. On the eco calendar the PMI data out of Europe and UK...

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Recovery Signs Encourage Safe Haven Flows Out of Dollar

Recovery Signs Encourage Safe Haven Flows Out of Dollar Daily FX Market Roundup May 20, 2020 The US dollar is trading lower against all of the major currencies this morning. Stocks and 10 year Treasury yields perked up again on the back of strong results from Lowe’s and Target. Lowe’s reported 11.2% increase in same store sales in Q1 while Target said strong online shopping fueled 10.8% rise in same store sales last month. Results such as these reinforce the market’s view that the...

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Tide Turning for EURO?

Tide Turning for EURO? Daily FX Market Roundup May 19, 2020 Most of the major currencies powered higher today even though stocks gave up part of Monday’s gains. USD/JPY rose above 108 but ended the NY session closer to 107.75. In fact, early rallies faded as the day progressed with EUR/USD and USD/JPY coming off their highs. According to the latest economic reports, US housing market activity contracted further in the month of April with housing starts falling 30% and building permits...

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Currencies Rally as Stocks Soar on Vaccine, Powell Optimism

Currencies Rally as Stocks Soar on Vaccine, Powell Optimism Daily FX Market Roundup May 18, 2020 Investors have a number of reasons to feel optimistic at the start of this new trading week and their positive sentiment is reflected in the strong moves in equities and currencies. First and foremost, Moderna Therapeutics, an American biotech company reported very positive early stage human trial coronavirus vaccine results. All 45 participants who received the vaccine produced COVID-19...

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Dollar Shrugs Off Weak Data as May Indicators Signal Bottom

Dollar Shrugs Off Weak Data as May Indicators Signal Bottom Daily FX Market Roundup May 15, 2020 The news flow in the last 24 hours has been decidedly negative with US retail sales falling more than expected, relations between China and the US souring further and Germany slipping into recession. Yet investors were unfazed with stocks ending the day flat and USD/JPY recovering earlier losses. In the US, consumer spending dropped -16.4% in the month of April, a record decline for retail...

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What’s Driving Dollar Gains in Early NY Trade

What’s Driving Dollar Gains in Early NY Trade Daily FX Market Roundup May 14, 2020 The US dollar extended its gains against all of the major currencies this morning. Some market watchers are attributing the dollar’s rise to President Trump’s support for the greenback because in an interview this morning with Fox News he said “it’s a great time to have a strong dollar.” However the truth of the matter is that the currency is rising for other reasons because Trump’s dollar outlook has no...

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Dollar Rises as Fed Powell Rules Out Negative Rates

Dollar Rises as Fed Powell Rules Out Negative Rates Daily FX Market Roundup May 13, 2020 The US dollar traded higher against all of the major currencies on the back of risk aversion and comments from Federal Reserve Chairman Jay Powell. While his outlook was very cautious, Powell ruled out negative interest rates. In his economic update webinar, Powell said the virus raises concerns of long term economic harm and the outlook is uncertain with downside risks significant. Therefore...

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More Easing from RBNZ? Not So Fast. And Powell Outlook

More Easing from RBNZ? Not So Fast. And Powell Outlook Daily FX Market Roundup May 12, 2020 The Reserve Bank of New Zealand meets tonight and the big question is whether or not they will ease. On April 20th, RBNZ Governor Orr said negative rates are not ruled out and they will be thinking about additional stimulus in May. However with interest rates hovering just above zero at 0.25%, the bar for a rate cut is high. Instead, if the central bank were to ease, the next move would more...

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