Tag Archives: 4) FX Trends

I had the privilege to join Alix Steel, the Bloomberg anchor, and Laird Landmann from TCW on the set earlier today. Here is the link to the 2.5-minute clip. The issue is the dollar’s outlook. The greenback had looked to be on the verge of breaking out higher before the US President expressed disapproval with the Fed rate hikes and, then the following day, aggressively accused the EU and China of manipulating their...

Swiss Franc The Euro has fallen by 0.24% to 1.1609 CHF. EUR/CHF and USD/CHF, July 23(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates US Treasury Secretary Mnuchin told G20 finance ministers and central bankers that President Trump was not trying to interfere in the foreign exchange market or encroach upon the Federal Reserve’s independence. Trump’s comments and tweets...

It was supposed to be a quiet week. The economic data and event calendar was light. There were three features, and none would likely disrupt the markets much. Eurozone The first two are in Europe. The eurozone flash PMI for July, the first insight into how Q3 has begun. The PMI is expected to paint a mostly steady economic activity. The June composite PMI rose for the first time since January, and it is forecast to be...

US equities and the dollar appear to be moving higher together. The greenback is near its best level this year against most of the major and emerging market currencies. The Chinese yuan is not an exception to this generalization. At the same time, the S&P 500 is at its best levels since the downdraft February, and the NASDAQ set a new record high earlier in the week. Many investors and observers speculate about the...

Swiss Franc The Euro has risen by 0.19% to 1.1651 CHF. EUR/CHF and USD/CHF, July 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is little changed but mostly softer as the week draws to a close. The market is digesting the implications of yesterday’s comments by President Trump about interest rates and foreign exchange, and without fresh economic data, are...

Swiss Franc The Euro has risen by 0.03% to 1.1625 CHF. EUR/CHF and USD/CHF, July 19(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is extending its recent gains against most of the world’s currencies. We continue to see the most compelling case for the macro driver being the diverging policy mixes. There are also more immediate factors too. The surprisingly...

Swiss Franc The Euro has fallen by 0.21% to 1.1635 CHF. EUR/CHF and USD/CHF, July 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is at its best level here in July against the Canadian dollar. The CAD1.3265 area corresponds to a 61.8% retracement of the leg down in late June from almost CAD1.3390 to the recent low near CAD1.3065. The Australian dollar has...

The yield on the 3-month US Treasury bill is pushing above 2% today for the first time since 2008. The yield had briefly dipped below zero as recently as late 2015. Although today’s yield seems high, this Great Graphic shows the nominal generic three-month yield going back to 1990. Then the three-month bill yielded 8%. The peak in the last cycle (2006-2007) was a little above 5%. It is true that in the past business...

Swiss Franc The Euro has fallen by 0.21% to 1.1645 CHF. EUR/CHF and USD/CHF, July 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar eased in Asia session and the European morning. The greenback had appeared technically vulnerable, and the economic news stream is light. Sterling, unlike most of the other major currencies, remains within yesterday’s range....

Given that some of the retail sales that were expected in June were actually booked in May is unlikely to lead to a large revision of expectations for Q2 US GDP, the first estimate of which is due in 11 days. Before the data, the Atlanta Fed’s GDP Now projects the world’s biggest economy expanded at an annualized pace of 3.9% in Q2. If true, it would be the strongest quarterly expansion since Q3 14, when the economy...