Forex News
FX Daily Strategist: US
FX markets lacking direction, correlation between yields USD looser than many supposed FX markets continue to trade with a lack of clear direction, characterised by quick reversals and a range of mostly unconvincing explanations being wheeled out for the moves. A slow grind higher in equities in the US session, after sharp opening losses suggested […]
BOE Minutes (Mar): BOE voted 7-2 for unchanged APF just as at the Feb meeting.
The immediate decision: After increasing the asset purchase facility (APF) by GBP 50bn to GBP 325bn at the February meeting and after the Inflation Report released in February, we did not expect any material changes in the monetary policy stance at the March meeting.
Fears of China slowdown retreat; risk currencies regain ground
In contrast to BHP Billiton’s gloomy outlook for China demand for iron ore announced yesterday, Australia’s Bureau of Resources and Energy Economics (BREE) issued its latest forecasts – and it was certainly upbeat. The agency expects iron ore exports to rise by more than 50 percent by 2016/17 compared with last year on the back […]
FX Daily Strategist: Europe
Paradigm Lost? Treasury sell-off fails to support USD Just when the FX market was settling into its new paradigm of bond-yield watching, the spectacle of US Treasury yields shooting higher in the NY afternoon while the dollar heads lower is cause for some fresh soul-searching.
FX Daily Strategist: Europe
USD loses most of its earlier-week gains; soft US core a factor A quick look-back shows the USD was actually weaker on the week (in DXY terms at least) and within G10 was only stronger versus CAD, NOK and JPY. USD gains earlier in the week followed the break higher in Treasury yields, the latter […]
The dollar continues to trickle lower in a quiet Asian session
A quiet start to the week, with Asia confined to tight ranges across all currency pairs with no data releases to spur activity. China equity markets were in the red after softer housing data at the weekend, but the rest remained in the black.
FX Daily Strategist: US
US yields still in the driver seat pushing USD higher US Treasury yields remain the primary driver in FX, and yesterday’s fall back in yields saw a partial reversal of most of the moves witnessed in the prior three days, with the USD softening particularly vs. NZD (helped by very strong PMI) but also AUD.
The dollar hits resistance on profit-taking ahead of the weekend
Profit-taking into the weekend was the order of the day during the Asian session, with the USD struggling to make further gains after its two-day rally. On the data front, headline Singapore non-oil domestic exports staged a mighty rebound in February, rising 30.5 percent y/y versus consensus estimates of +16.2 percent after a strong performance […]
FX Daily Strategist: US
USD may have further legs with dovish Fed rhetoric ignored The European session saw some profit taking with the USD softening a tad against the JPY and EUR in response to a pause in the move higher in UST yields. EURUSD has recovered further from the 1.3004 low in Asia but this seems more related […]
More gains for the dollar, but not quite so emphatic in Asia
More of the same in the Asian session with an early sell-off in US bonds helping the USD to higher levels. But with no follow-through action, currency pairs consolidated and edged marginally higher on slight profit-taking in the second half of the session. USDJPY managed a fresh cycle high of 84.16.
GBP Analysis
Cable closed in NY at $1.5707, off an extended recovery high of $1.5748 after rate had bounced from a pullback low of $1.5621 (76.4% $1.5603/74) on strong fix demand and heavy EUR/GBP sales from a major French name.
USD consolidates in Asia after its post-FOMC rally
Very little activity to report from the Asian session after the US dollar reigned supreme after the FOMC meeting. Currencies were content to consolidate at lower levels versus the greenback, awaiting fresh impetus from the European and US sessions.