Tag Archives: 4) FX Trends

Marc ChandlerMarc Chandler - Click to enlarge The combination of divergence and the US policy mix is underpinning the dollar and I was invited to share my views on CNBC’s Squawk Box earlier today. It dovetailed nicely Matthew Diczok (from Merrill Lynch) views on Fed policy and US interest rates. In addition, I note the troubled spot Europe finds itself with German industrial output unexpectedly falling for a third...

Swiss Franc The Euro has fallen by 0.24% at 1.1395 EUR/CHF and USD/CHF, October 08(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The markets are having a rough adjustment to the return of the Chinese markets are the week-long holiday. The cut in the required reserves failed to lift investor sentiment.  The Shanghai and Shenzhen Composites fell almost 4%, and...

Interest rates, led by the US, have accelerated to the upside. With price pressures generally rising and oil prices at four-year highs, it is understandable. Market participants need to see the breakout that has lifted US 10-year yields to their highest level in seven years is confirmed in subsequent price action. The first test was passed as the disappointing jobs growth in September could have been an excuse to push...

Swiss Franc The Euro has risen by 0.11% at 1.1429 EUR/CHF and USD/CHF, October 05(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is firmer against most of the major and emerging market currencies. The yen and sterling are resisting the pressure, while the South African rand and Russian rouble are paring some of this week’s declines. US equity losses...

This Great Graphic comes from Peter Coy and team’s article in Business Week. It succinctly shows three metrics for the internationalization of domestic currencies: global payments, international bonds, and foreign exchange reserves. It does not strike me as surprising, and the role of the euro as a payments currency reflects its role in intra-European trade. The substance of the article bears little relation to the...

Swiss Franc The Euro has risen by 0.29% at 1.1419 EUR/CHF and USD/CHF, October 04(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is consolidating yesterday’s gains against most of the major currencies, though the dollar bloc is underperforming. Bond yields are moving higher, and equities are lower. With a light data and events stream, the price action itself...

Bloomberg Clip from Discussion on Emerging Markets In my first television appearance since joining Bannockburn Global Forex, I joined Tom Keene and Francine Lacqua on the Bloomberg set. In this nearly 2.5 min clip, we talk about the Indonesia rupiah and the dollar’s move above the IDR15000 level for the first time since the 1997-1998 Asian financial crisis. I suggest there are several factors weighing on many emerging...

Swiss Franc The Euro has fallen by 0.32% at 1.135 EUR/CHF and USD/CHF, October 02(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The US dollar is rising against most of the major and emerging market currencies. The Swiss franc and the Japanese yen are the exceptions and are holding their own. Global equities are mixed. Asia, excluding Japan, was mostly lower,...

The IMF reports the most authoritative currency allocation of global reserves at the end of every quarter with a quarter delay. Invariably, an economist, strategist, or journalist is inspired to write why some data nugget confirms the demise of the dollar as the dominant currency. Given the unorthodox US President, his criticism of Fed policy, and desire for a weaker dollar, the protectionism, and trillion-dollar...

Swiss Franc The Euro has risen by 0.16% at 1.1415 EUR/CHF and USD/CHF, October 01(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The Canadian dollar and Mexican peso are extending its pre-weekend gains on news that a new NAFTA deal (US-Mexico-Canada Agreement USMCA) has been struck. Against most of the other major and emerging market currencies, the US dollar...