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Tag Archives: US Outlook

Turnaround Tuesday – Why Some Currencies Recovered & Others Didn’t

Turnaround Tuesday – Why Some Currencies Recovered & Others Didn’t Daily FX Market Roundup 07.20.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Stocks bounced back sharply on Tuesday as the S&P 500 erased nearly of Monday’s losses. Investors were relieved that Treasury yields stopped falling but beyond that, there was no specific news or catalyst. The COVID-19 delta variant is a big worry but as long as hospitalizations and serious complications are...

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How Did Euro Escape Losses as Stocks Tumbled?

How Did Euro Escape Losses as Stocks Tumbled? Daily FX Market Roundup 07.19.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The sharp sell-off in U.S. stocks on Monday drove currencies sharply lower. While monetary policy is an important long term driver of currency flows, risk appetite has the most significant short-term influence on currency movements. Sentiment is king because when investors are nervous nothing else matters. We saw that today with the...

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Dollar Snaps Back Ahead of Retail Sales

Dollar Snaps Back Ahead of Retail Sales Daily FX Market Roundup 07.15.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management For the past few weeks, the U.S. dollar has oftentimes moved in a completely opposite direction from Treasury yields. That trend continued on Thursday as the greenback shrugged off losses in 10 year rates to trade higher against all of the major currencies. Federal Reserve Chairman Powell may not be as eager to normalize monetary policy as...

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USD Dollar Drops but Why Did NZD Rally and Not CAD?

USD Dollar Drops but Why Did NZD Rally and Not CAD? Daily FX Market Roundup 07.14.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Central banks are taking bigger leaps to normalize monetary policy and investors are wondering If the Federal Reserve is next. On Wednesday, the Reserve Bank of New Zealand shocked investors by suddenly halting asset purchases. Although hawkishness was widely anticipated with a number of local banks forecasting a November rate...

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Forex Preview: Powell Testimony, Rate Decisions and Data

Forex Preview: Powell Testimony, Rate Decisions and Data Daily FX Market Roundup 07.13.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The U.S. dollar traded sharply higher on Tuesday against all of the major currencies on the back of red hot consumer price growth. CPI rose 0.9% in the month of June, up from 0.6% in May and against a 0.5% forecast. On an annualized basis, consumer price inflation jumped 5.4%, the largest increase in 12 years. Core prices...

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My Favorite Currency This Week

My Favorite Currency This Week Daily FX Market Roundup 07.12.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management This is a busy week for the financial markets. There are 3 central bank monetary policy announcements along with inflation, employment and consumer spending numbers scheduled for release from all corners of the globe. Federal Reserve Chairman Jerome Powell will also deliver his semi-annual testimony on the economy and monetary policy. With these big...

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What Drove USDJPY Below 110

What Drove USDJPY Below 110 Daily FX Market Roundup 07.07.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Ask anyone and they will agree that economic activity in the U.S. is picking up with businesses enjoying a much needed post pandemic recovery. The airports were packed when I traveled to and from Hawaii last week with restaurants booked far in advance. The Federal Reserve recognizes this resurgence in demand and based on the last central bank meeting...

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FOMC Minutes Highlight FX Policy Divergences

FOMC Minutes Highlight FX Policy Divergences Daily FX Market Roundup 07.07.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The June FOMC minutes confirms that the Federal Reserve is edging closer to tapering asset purchases. According to today’s release, “various participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings.” The U.S....

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What Drop in Yields Ahead of Fed Minutes Means for Dollar

What Drop in Yields Ahead of Fed Minutes Means for Dollar Daily FX Market Roundup 07.06.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The June FOMC meeting minutes is one of this week’s key event risks. The Federal Reserve grew less dovish last month by opening the door to the discussion of reducing asset purchases but since then disappointing U.S. data has investors questioning the timing of taper and ruling out an interest rate hike. Although Friday’s...

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USDJPY at 15 Month Highs & What to Expect from BoE

USDJPY at 15 Month Highs & What to Expect from BoE Daily FX Market Roundup 06.23.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management The U.S. dollar rose to its strongest level against the Japanese Yen in 15 months. Equities and currencies benefitted from Federal Reserve Chairman Powell’s reassurance that 1970s rapid rise in inflation is “very, very unlikely.” With the central bank’s confidence, investors drove up risk assets. Japanese Yen crosses performed...

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