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The dollar was mixed in N.Y. trade on Friday, though a disappointing Q4 GDP print sent yields and Wall Street lower again. Despite that, EUR-USD headed down to the 1.12 handle, following reports that Greece's new government may not cooperate with the troika. Read more
While this weekly column usually looks at a number of countries, this week will be different. The general tenor of economic news from most large OECD countries is at best concerning: the EU is grappling with deflation, Japan’s experiment with Abenomics is struggling, Australia’s transition away from a raw material exporting economy is having problems and now Canada’s reliance on oil exports has led their central bank to cut rates. Read more
The dollar came under broader pressure. EUR-USD worked higher, to the 1.1350 area despite a -0.6% y/y reading in Eurozone HICP in preliminary January data. A dip in Eurozone unemployment to 11.4% from 11.5% helped offset, while the market is also aware that the ECB's QE program, designed to eradicate deflation, doesn't commence until March. Read more
EUR-USD has traded a narrow path in Asia, holding in the low-to-mid 1.13s and remaining well within yesterday's range. 'Grexit' concerns have come off the boil with the new Greek government pledging to look for common ground with the Troika. Focus now is on Eurozone CPI data. Read more
The dollar rallied broadly in N.Y. trade on Thursday, though it was the commodity bloc that was hit the hardest. Oil and copper prices hit new trend lows, which saw USD-CAD rally to multi-year highs of 1.2650, and AUD-USD sink to multi-year lows under 0.7240. Read more
The USD traded firmer while the CAD, AUD and NZD came under pressure after the RBNZ shift from a hawkish to a neutral bias and warned that the kiwi is overvalued. An article in the Australian newspaper also reckoned that an RBA rate cut on Feb-3 is "almost certain," while copper, gold and other commodity prices were soft today. Read more
The AUD and SGD were the main shows in town, with the former spiking above 0.80 on Australian CPI data and the latter diving sharply after Singapore's MAS unexpectedly cut the slope of monetary policy band. AUD-USD made a five-day peak of 0.8025. Australia Q4 CPI came in at 0.2% q/q, below the median 0.3%, but the core 'trimmed mean' -- which the RBA focuses on -- was above expectations at 0.7% q/q. Read more
The dollar retained a softer tone into the Fed announcement. EUR-USD oscillated between 1.1332 and 1.1382. The market ignored an above-forecast German consumer confidence reading today, and the 'rebound tone' of yesterday is absent today, though there seems to be a feeling that the euro has managed to build a toehold after making an 11-year low at 1.1098 on Monday. Read more
FX trade was relatively quiet ahead of the FOMC announcement in N.Y. on Wednesday, with the greenback firming up initially, before easing back into the Fed. EUR-USD found support under 1.1310 early on , but didn't stray much higher than 1.1360. USD-JPY meanwhile, remained over 117.60, though was unable to give the 118 mark a test. Read more
