Tag Archives: USD

[unable to retrieve full-text content]The US dollar is little changed ahead of the job report. Our near-term bias is for a lower dollar. Sterling is flat and is holding on to about a 1% gain this week. The Japanese yen is about a 0.3% lower and is off 1.7% this week. The euro was coming into today for the week.

[unable to retrieve full-text content]The new month has begun with a couple of surprises. The biggest surprise has been the record jump in the UK manufacturing PMI to 53.3 from 48.3. A much smaller rebound was expected in August after the Brexit shock drop in July.

Swiss Franc Switzerland Trade Balance (See more posts for Switzerland Trade Balance) Click to enlarge. Source Investing.com FX Rates The US dollar is mostly little changed against the major, as befits a summer session. There are two exceptions. The first is the New Zealand dollar. Comments by the central bank’s governor played down the need for urgent monetary action and suggested that the bottom of cycle may be...

Summary: Dollar weakness does not line up with increased perceived risk of Fed hiking rates. Frequently the rate differentials lead spot movement. Some now turning divergence on its head, claiming too expensive to hedge dollar-investments so liquidation. TIC data, though, shows central banks not private investors, were the featured sellers in June, the most recent month that data exists. The US dollar has...

Swiss Franc As usual, when discussions about rate hikes go on, then both the dollar and the euro gain against the Swiss Franc. Click to enlarge. Federal Reserve Last week, some market participants were giving more credence to what seemed like dovish FOMC minutes than to NY Fed President Dudley’s remarks that accused investors of complacency over the outlook for rates. Yesterday, Vice-Chairman of the Federal Reserve...

Swiss Franc: In the real effective exchange rate calculation, the PPI plays an important role. The Swiss producer price index fell by 0.8% YoY, while the German one is down 2.0%. Thismeans that in 2016 the CHF overvaluation is rising, when compared to the major Swiss trading partner Germany. The values for 2015 were -6% for the Swiss and -2.5% for Germany, the CHF overvaluation was reduced. Click to enlarge. Source...

Swiss Franc A bad day for the dollar means a good day for CHF, that appreciates against both euro and dollar. Click to enlarge. FX Rates It is not a good day for the US dollar. It is being sold across the board. The seemingly dovish FOMC minutes released late yesterday appears to have gotten the ball rolling. The takeaway for many was that any officials wanted more time to assess the data at the July meeting. The...

Swiss Franc Click to enlarge. FX Rates The US dollar is enjoying a mid-week bounce against all the major currencies. It appears that participants in Asia and Europe are giving more credence to NY Fed Dudley’s comments yesterday. Although many in the market have given up on a rate hike this year, Dudley reaffirmed his belief that the economy was accelerating in H2 and that the market was being too complacent. Many...

Swiss Franc Click to enlarge. FX Rates The US dollar is being sold across the board today. The US Dollar Index is off 0.65% late in the European morning, which, if sustained, would make it the largest drop in two weeks. The proximate cause being cited by participants and the media is weak US data that is prompting a Fed re-think. However, we are a bit skeptical. It is not that the US data has been strong, or that...

Swiss Franc The Swiss Franc was nearly unchanged against the euro. Click to enlarge. FX Rates The US dollar closed the pre-weekend session well off its lows that were seen in response to the disappointing retail sales report. It has been unable to sustain the upside momentum, and as North American dealers prepare to return to their posts, it is trading lower against most of the major currencies. The notable...