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Tag Archives: negative rates

FX Daily, February 05: Position Squaring Weighs on the Dollar Ahead of the Jobs Report

Swiss Franc The Euro has risen by 0.04% to 1.0821 EUR/CHF and USD/CHF, February 5(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: While equities continue to march higher, the dollar is softer amid position squaring ahead of the US jobs data. Gold has stabilized after yesterday’s shellacking. Estimates for US nonfarm payrolls appear to have been creeping higher, encouraged by the ADP, PMI, and weekly initial...

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FX Daily, February 4: Negative Rates and the Bank of England: Having Your Cake and Eating it Too

Swiss Franc The Euro has risen by 0.01% to 1.0817 EUR/CHF and USD/CHF, February 4(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The euro has been sold through $1.20 for the first time since December 1 and has now given back roughly half of the gains scored from the US election (~$1.16) to the early January high (~$.1.2350). More broadly, the greenback is bid against most of the major currencies, with the...

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FX Daily, January 13: PBOC Sends Signal as Market Looks Past Impeachment Vote

Swiss Franc The Euro has fallen by 0.22% to 1.0792 EUR/CHF and USD/CHF, January 13(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The US dollar is regaining ground lost in yesterday’s setback against the major currencies. Sterling is the notable exception. It was toying with the $1.37 area, perhaps helped by the Governor of the Bank of England signal that there still are hurdles to adopting negative interest...

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FX Daily, May 21: Markets Pull Back after Flirting with Breakouts

Swiss Franc The Euro has risen by 0.40% to 1.0634 EUR/CHF and USD/CHF, May 21(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: New two and a half month highs in the S&P 500 yesterday failed to have much sway in the Asia Pacific region and Europe today as US-China tensions escalate and profit-taking set in. Perhaps it is a bit of “buy the rumor sell the fact” type of activity on the back of upticks in the...

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FX Daily, May 20: Fed Funds Futures No Longer Imply Negative Rates

Swiss Franc The Euro has fallen by 0.13% to 1.0592 EUR/CHF and USD/CHF, May 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Another late sell-off of US equities, ostensibly on questions over Moderna’s progress on a vaccine, failed to deter equity gains in the Asia Pacific region. China was a notable exception, but the MSCI Asia Pacific Index rose for the fourth consecutive session. European shares are little...

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FX Daily, May 18: Yuan Slumps as US-Chinese Tensions Rise

Swiss Franc The Euro has risen by 0.18% to 1.0525 EUR/CHF and USD/CHF, May 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Despite somber warnings that the US economic recovery can stretch to the end of next year, investors have begun the new week by taking on new risks. Most equity markets in the Asia Pacific region rose, with Australia leading the large bourses with a 1% gain. India was an outlier,...

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FX Daily, May 14: Risk Appetites Wane

Swiss Franc The Euro has fallen by 0.08% to 1.0504 EUR/CHF and USD/CHF, May 14(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Risk appetites have been gradually waning this week. US equity losses mounted yesterday after Tuesday’s late sell-off. Asia Pacific equities were off, with many seeing at least 1.5% drops. Europe’s Dow Jones Stoxx 600 is off a little more to double this week’s decline and leaves it in a...

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FX Daily, May 8: Jobs and Negative Fed Funds Futures

Swiss Franc The Euro has fallen by 0.09% to 1.0528 EUR/CHF and USD/CHF, May 08(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The S&P 500 closed near its session lows for the third day running yesterday but failed to deter the bulls in Asia-Pacific, where most markets rose by more than 1%. Taiwan, Korea, and Australia lagged a bit though closed higher.  Europe’s Dow Jones Stoxx 600 is firm, and the modest...

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FX Daily, March 26: Rumor Bought, Fact Sold

Swiss Franc The Euro has fallen by 0.03% to 1.0623 EUR/CHF and USD/CHF, March 26(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Speculation that the US Senate would pass the large stimulus bill worth around 10% of US GDP is thought to have fueled a bounce in equities in recent days. The bill was approved and will now go to the House, where a vote is expected tomorrow. If the rumor was bought, the fact has been...

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FX Weekly Preview: China Returns, ECB Record, Fed Minutes and the Week Ahead

Many high-income countries experienced little growth but strong price pressures in the 1970s. Since the mainstream economics said the two were mutually exclusive, a new term had to be created, hence stagflation. Fast forward almost half a century later, and mainstream economists are still having a problem deciphering the linkages between prices and economic activity, such as inflation and employment. Theory needs to accommodate the new facts. Theory is being...

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