Tag Archives: USD

Overview:  The dollar is well bid. It has risen to new two-year highs against the dollar bloc and Chinese yuan. Aided by worse than expected retail sales, sterling, on its anniversary of leaving the European Exchange Rate Mechanism fell to its lowest level since 1985. This fits into the broader risk-off move. The S&P 500 fell to new two-month lows yesterday, and FedEx warnings after the bell yesterday add to the string of worrisome comments from leading US...

Overview: The capital markets are quiet today. Equity markets and bond yields have a slight upside bias, while the dollar is little changed. Despite reports that the lockdown in Chengdu is easing, Chinese equities underperformed in the Asia Pacific region. Japan, Hong Kong, Taiwan, and Australia eked out modest gains. After sliding around 2.4% over the past two sessions, the Stoxx 600 is up fractionally. US futures have edged slightly higher. The US 10-year yield is...

Overview: The firmer than expected US CPI set off a major reversal of the recent price action. It is a two-prong issue. The first is about inflation and the squeeze on the cost-of-living. The second, and more powerful in the capital markets is how the Fed is likely to respond. This drove US stocks and bonds lower and lifted the dollar broadly. Asia Pacific bourses were a sea of red. Most major markets were off 1-2%, while the Nikkei, the Hang Seng, and Australia’s...

Overview: The US dollar remains offered ahead of today’s CPI report. Most European currencies are outperforming the dollar bloc, and the greenback is holding inside yesterday’s range against the yen. Most emerging market currencies are firmer, as well. China’s markets re-opened from the long-holiday weekend and the yuan is a touch softer. After the strong close to US equities yesterday, and some mild follow-through buying today in the futures, equities in the Asia...

Overview: The bout of profit-taking on long dollar positions begun last week has carried into the start of this week.  Despite the escalating rhetoric, the yen is not participating today and is trading within the pre-weekend ranges.  The greenback’s lows have been set in the European morning and have stretched the intraday momentum indicators, suggesting that North American dealers may not follow suit. The uncertainty about the Swedish election outcome has not...

After extending its recent gains, the dollar fell sharply at the end of last week. Many factors could have sparked the pullback, including the stronger expressions of concern by Japanese officials with an implicit threat of intervention and perceptions of an increased likelihood that the ECB will deliver another 75 bp hike next month. We had anticipated that the dollar bulls would turn cautious after the ECB meeting and before the September 13 US CPI...

Overview: The dollar is having one of the largest setbacks in recent weeks. We expected the dollar to soften ahead of next week’s CPI, which may fan ideas/hopes of a peak in US price pressures, but the magnitude and speed of the move is surprising, and likely speaks to the extreme positioning. Still, we caution that the intraday momentum indicators are stretched, and the underlying bullish sentiment, may see North American operators take advantage of the dollar’s...

Overview: Heightened warnings from Japanese officials has helped the dollar steady against the yen, while the euro hugs parity ahead of the outcome of the ECB meeting, where a 75 bp hike is anticipated. Most Asian equity markets rallied in the wake of yesterday’s gains in the US. China and Hong Kong were notable exceptions. Europe’s Stoxx 600 is practically flat as are US futures. The US 10-year yield is softer, a little below 3.25%, while European benchmark yields...

Overview: While the US dollar appears to be consolidating its recent gains, the Japanese yen and Chinese yuan remain under pressure. Officials seem more concerned about the pace of the move than the level it has reached. New and large fiscal initiatives that the new UK government has floated has failed to change sentiment toward sterling, which is the second weakest major currency today after the Japanese yen. The yen’s weakness did not prevent new losses in Japanese...

Overview: The precipitous fall in equities continues while the dollar remains buoyant. Nvidia’s warnings about US curbs on sales to China and the first drop in South Korea’s chip exports in two years, coupled with the largest lockdown in China since Shanghai encouraged investors to move to the sidelines. Most of the major equity markets in the Asia Pacific region were off 1-2%. The Stoxx 600 is off for the fifth consecutive session and the second session of more than...