Wednesday , October 16 2019
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Tag Archives: US Outlook

Brexit Deal in Sight. Which Currencies are Set to Rally?

Brexit Deal in Sight. Which Currencies are Set to Rally? Daily FX Market Roundup October 16, 2019 With 16 days to go before the UK is scheduled to leave the European Union, a Brexit deal is finally in sight but its still important for investors to tread cautiously because of the inevitable resistance from the DUP and reports from “senior EU officials” that its “way too premature” to assume that a Brexit deal is imminent. Nonetheless sterling and many other major currencies traded...

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Deal or No Deal – Pound Holds Bid

Market Drivers October 15, 2019 Hope springs for Brexit deal EZ ZEW slightly better Nikkei 1.87% Dax +0.44% UST 10Y 1.69% Oil $52/bbl Gold $1493/oz BTCUSD $8300 Europe and Asia: GBP UK Wages 3.8% vs. 3.7% EUR ZEW -22 vs. -27 North America: No data It’s been another night of Brexit drama in FX markets with rumors, headlines and statements dominating trade in cable as the unit swing back and forth on the latest state of negotiations. After rallying hard at the start of London open the pair...

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What Does US-China Phase 1 Deal Mean?

What Does US-China Phase 1 Deal Mean? Daily FX Market Roundup October 11, 2019 The sentiment in the markets shifted from gloom to hope this week on the prospect of breakthroughs in US-China trade and Brexit negotiations. Currencies and equities surged as policymaker tease the possibility of a deal and by the end of the week USD/JPY rose to its strongest level in 2 months and GBP/USD rose to its highest level since June. On Friday President Trump announced a “Phase 1 Deal” with China and...

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Dollar, Risk Soars as Trump Trade Tease

Dollar, Risk Soars as Trump Trade Tease Daily FX Market Roundup October 10, 2019 It’s been a rollercoaster ride in FX this week with currencies reacting to every positive and negative headline. Overnight, investors were worried that the Chinese delegation would leave after only one day of talks and even in early morning every one was unclear as to how the primary talks would go. The uncertainty is so high that market watchers resorted to dissecting the body language of every one...

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FX Goes on a Rollercoaster

Market Drivers October 10, 2019 Contradictory headlines create a rollercoaster ride in risk UK data continues to miss Nikkei 0.45% Dax +0.06% UST 10Y 1.58% Oil $52/bbl Gold $1508/oz BTCUSD $8578 Europe and Asia: GBP UK GDP -0.1% vs. 0.0% GBP UK MP -0.7% vs. 0.1% North America: USD CPI 8:30 Major pairs went on a wild rollercoaster ride in Asia session trade today driven by a series of contradictory headlines regarding US-China trade talks. Risk-off flows dominated the start trade when...

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Risk Rebounds on Limited Trade Deal News- But Will the Rally Last?

Market Drivers October 9, 2019 Pound flips on contradictory Brexit headlines China still committed to a limited trade deal Nikkei -0.61% Dax +0.96% UST 10Y 1.55% Oil $53/bbl Gold $1502/oz BTCUSD $8245 Europe and Asia: No data North America: USD FOMC Minutes 14:00 Its been a seesaw night of trade in the currency market with contradictory geopolitical headlines driving price action back and forth as markets tried to asses the state of play amidst confusion and lack of any meaningful data...

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Dollar Rallies but No One is Betting on a China Deal Just Yet

Dollar Rallies but No One is Betting on a China Deal Just Yet Daily FX Market Roundup October 8, 2019 As China’s delegation arrives in the US for trade talks, the greenback extended its gains against all of the major currencies. This is the largest and broadest team that China has sent in the 13 rounds of trade negotiations since 2018. Investors saw this as a strong commitment on behalf of the Chinese to secure a deal before they return to Beijing. But don’t bet on a China deal just...

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FX Sentiment Sours on US-China and Brexit News

Market Drivers October 8, 2019 US-China retaliation turns market risk negative Enthusiasm on Brexit deal wanes Nikkei -0.16% Dax -0.10% UST 10Y 1.55% Oil $53/bbl Gold $1499/oz BTCUSD $8173 Europe and Asia: EU GE Industrail Production 0.3% vs. -0.1% North America: USD Core PPI 8:30 After a positive risk session in Asia FX flows flipped completely on news that China may retaliate against US companies after the US announced that it would blacklist eight Chinese high tech companies on human...

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Dollar Pops, China is Ready to Deal. Is the Rally Durable?

Dollar Pops, China is Ready to Deal. Is the Rally Durable? Daily FX Market Roundup October 7, 2019 There are 3 events that could trigger a major rally for the US dollar this week. US-China trade talks, the FOMC minutes and comments from Federal Reserve Chairman Jay Powell. This morning, investors were skeptical about trade because Vice Premier He suggested that China would not relent on their industrial policy and state subsidies. While that remains the case, by the end of the day, the...

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Dollar Heads Lower. Don’t be Fooled by Jobs Report

Dollar Heads Lower. Don’t be Fooled by Jobs Report Daily FX Market Roundup October 4, 2019 Don’t be fooled by the September jobs report. The unemployment rate may have dropped to its lowest level in 50 years but the labor market is weakening and not improving. While the data suggests that the economy is at full employment, hence the moderation in job growth, the slowdown in the services and manufacturing poses a major risk to hiring in the months ahead. Only 136K jobs were created last...

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