Swiss Franc The Euro has risen by 0.03% at 1.1215 EUR/CHF and USD/CHF, May 30(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: After significant moves in equities and interest rates, investors are taking a collective breath, waiting for fresh developments. A nervous calm has settled over the capital market. China, Japan, and Australian equities leaked lower, but...
Read More »FX Daily, May 29: Equity Slump Deepens while Yields Plunge
Swiss Franc The Euro has fallen by 0.20% at 1.1222 EUR/CHF and USD/CHF, May 29(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The slump in equities continues after the poor showing in the US yesterday. Nearly all bourses in Asia Pacific and Europe are lower. Indonesia is the notable exception as domestic operators re-position after the election. Foreign investors...
Read More »FX Daily, May 28: Risk Appetites Curbed, US Leadership Awaited in FX
Swiss Franc The Euro has risen by 0.20% at 1.1259 EUR/CHF and USD/CHF, May 28(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The euro initially reacted positively to the EU Parliament elections. The populists did not do quite as well as many expected. The two main groupings failed to secure a majority, but with the help of the Liberals, and possibly the Greens,...
Read More »FX Weekly Preview: The Evolution of Three Issues are Key in the Week Ahead
As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces–trade, Brexit and the US economy. With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes. The retaliatory tariffs are effective on June 1, but Beijing has not formally responded to the moves against Chinese companies. ...
Read More »FX Daily, May 23: Trade, Brexit, and Disappointing Flash PMIs Weigh on Global Markets
Swiss Franc The Euro has fallen by 0.43% at 1.121 EUR/CHF and USD/CHF, May 23(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The deterioration of the investment climate is spurring the sales of stocks and the buying of bonds. The dollar is firm. China and the US appear to be digging as if the trade tensions will remain for some time and the breech is beginning...
Read More »FX Daily, May 22: Sterling Can’t Get Out of Its Own Way
Swiss Franc The Euro has fallen by 0.24% at 1.1253 EUR/CHF and USD/CHF, May 22(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: There is a nervous calm in the capital markets. Yesterday’s rally in US shares failed to excite global investors. China, Hong Kong, and Taiwan markets fell, while Japan was mixed. Foreign investors continued to sell Korean shares, but the...
Read More »Rare Earths may Provide Leverage
Many American observers argue that the trade imbalance gives the US an advantage in a trade war with China. The US enjoys escalation dominance in tariffs because Chinese imports of US goods are so much less than the US imports of Chinese goods. However, the focus on quantities may be misleading. For example, the ability to find substitutes for the more expensive tariff imports could be a critical part of the evaluation....
Read More »FX Weekly Preview: The Week Ahead featuring the Battle for 7.0
The strategic objective is to integrate China into the world economy. The liberal international solution was trade, investment flows, and cultural exchanges. The rise of nationalism and China’s own willingness to flaunt the international rules are defeating the strategy. President Trump may suggest that China would prefer to negotiate with his main Democrat rival 18-months away from the election, by both Pelosi and...
Read More »FX Daily, May 17: China Questions US Sincerity
Swiss Franc The Euro has risen by 0.04% at 1.1285 EUR/CHF and USD/CHF, May 17(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Since the presidential tweets on May 3, the US had the initiative in the negotiations with China, but today, China has pushed back. It is cool to the idea promoted by the US that trade talks will resume shortly. Now it may take the...
Read More »FX Daily, May 16: US Struggles to Strike a Less Strident Tone
Swiss Franc The Euro has risen by 0.02% at 1.1299 EUR/CHF and USD/CHF, May 16(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Retail sales and industrial production disappointed in both the US and China prior to the end of the tariff truce, declared by the US in a series of presidential tweets on May 5. The reaction function of the US to the drop in equities was...
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