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Tag Archives: UK Outlook

FX: PMIs Paint a Different Picture of Global Economy

FX: PMIs Paint a Different Picture of Global Economy Daily FX Market Roundup October 23, 2020 On Thursday we outlined three main factors that could affect how currencies trade – the election, stimulus talk and economic data. As it turns out, data was the leading driver of currency flows on Friday. The dollar traded lower against most of the major currencies with the exception of sterling. PMIs were the main focus and to everyone’s surprise economic activity did not slow as much as...

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Will FX Traders Care More About Election, Stimulus or PMIs?

Will FX Traders Care More About Election, Stimulus or PMIs? Daily FX Market Roundup October 22, 2020 In terms of economic data, Friday is the most important day this week. Markit Economics will be releasing PMI numbers for Australia, the Eurozone, UK and the US. These are important reports because they measure the pace of growth in the service and manufacturing sectors and provide the most timely look at how these economies are doing. From these reports, we’ll get to see how much the...

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Why EUR Refuses to Fall & the Dollar’s Decline

Why EUR Refuses to Fall & the Dollar’s Decline Daily FX Market Roundup October 21, 2020 With 13 days until the US Presidential election, it is no surprise to see investors selling US dollars. President Trump and Democratic presidential nominee Joe Biden are locked in a tight race. The polls favor a Biden victory but investors can’t help but eye these surveys with caution. Trump won’t give up easily and in key battleground states, voters are very motivated to vote. If Biden wins...

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FX: Looming Stimulus Deadline Spooks Investors

FX: Looming Stimulus Deadline Spooks Investors Daily FX Market Roundup October 19, 2020 The US dollar traded lower against most of the major currencies on Monday as the new stimulus deadline looms. Over the weekend House Speaker Nancy Pelosi gave the White House a 48 hour deadline. She said if they want to get something done before the election, it needs to happen by Tuesday. President Trump is pushing for a deal and the White House is cautiously optimistic but the sell-off in stocks...

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Dollar Rallies on Consumer Comeback

Dollar Rallies on Consumer Comeback Daily FX Market Roundup October 16, 2020 The US dollar traded higher against most of the major currencies on Friday thanks to better than expected economic data. Consumer spending rose 1.9% last month, more than two times the market’s estimate. Excluding autos, demand rose 1.5% compared to a 0.4% forecast. Despite high unemployment and less jobless benefits spending rose for the fifth month in a row. With clothing and accessories leading the gain,...

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Can the US Consumer Power the Recovery?

Equities flat FX – all eyes on the pound Nikkei -0.41% Dax 0.37% UST 10Y 0.72 Oil $40 Gold $1908/oz BTCUSD $11291/oz. Asia and the EU EUR CPI 0.2% North America Open USD Retail Sales 8:30 It’s been a quiet night of trade on the last day of the workweek with equity futures basically flat and FX pairs stuck in 20 pip ranges. Last night’s dueling Town Hall meetings by President Trump and Vice President Biden produced some mild volatility in futures but in the end, there was no major...

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Dollar Drops as Pre Election Jitters Set In

Dollar Drops as Pre Election Jitters Set In Daily FX Market Roundup October 14, 2020 The US Presidential Election is three weeks away and investors are finally beginning to feel the jitters. Stocks sold off for the second day in a row, driving currencies lower in the process. This will be the most dramatic Presidential race in recent history and while most polls show Joe Biden in the lead, investors have grown leery of trusting the polls after being burned in 2016. Over the past few...

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Is the Market Too Complacent on Cable?

Equities up FX flat EZ inflation in line Nikkei 0.11% Dax 0.31% UST 10Y 0.72 Oil $40 Gold $1899/oz BTCUSD $11461/oz. Asia and the EU EU HICP 0.6% North America Open USD PPI 8:30 Equities continued their steady climb higher in Asian and early European trade with both Nasdaq and S&P higher by about 50 basis points but currencies were essentially flat in listless quiet trading. There was very little fresh news flow both on the political and economic front and what little there was...

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5 Reasons Why EURO is Headed Below 1.16

EURO Finally Breaks Down, 1.16 Next? Daily FX Market Roundup October 13, 2020 Euro finally broke down on Tuesday as it experienced its strongest one day slide in 3 weeks against the US dollar. We have been calling for a sell-off for days now as the rise in new coronavirus cases pose a major risk to the region’s outlook. France, Germany and Spain all reported significant spikes in cases which we believed would cause significant concern for investors and central bankers. We finally saw...

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FX: Stimulus Talks, Brexit and New Global Virus Restrictions

FX: Stimulus Talks, Brexit and New Global Virus Restrictions Daily FX Market Roundup October 12, 2020 The most important drivers of forex flows this week will be stimulus talks, Brexit negotiations and new virus restrictions in Europe and Asia. Based on the continued gains in US stocks, equity traders are completely unfazed by the possibility of things going awry. Currency traders on the other hand are more skeptical with USD/JPY falling for the second consecutive trading day and high...

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