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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
EUR-USD has traded lower in the wake of the FOMC, even though the statement wasn't really much of a cue for dollar bulls as it reiterated that it would remain "patient" in its rate normalization process, adding in a concern about international risks. A spike in 'Grexit' concerns has helped keep a cap on the euro, which slipped to a low of 1.1262 against the dollar during the Asia session, since remaining below 1.1300. Read more
The dollar took a solid hit in N.Y. on Monday, with selling starting early, as key corporate earnings misses made it clear Wall Street would not be having a good day. Microsoft, P&G, 3M, Caterpillar and Pfizer all fell short of street estimates, while future guidance singled out the problems with a strong dollar, and weak commodity prices. Read more
Via Jeff Miller (http://dashofinsight.com/weighing-week-ahead-time-focus-europe/) we learn that Wall Street traders think</a> that, if Oil falls to $30/barrel, that would be a sign of a global recession. From the Marketwatch article (http://www.marketwatch.com/story/story?guid=007e38da-a259-11e4-8b1e-16beaea571a5&storyguid=007e38da-a259-11e4-8b1e-16beaea571a5&siteid=nwhpf/): "The price of oil is about $17 a barrel away from signaling that a global recession is inevitable, according to a new survey of investment professionals." This puts the cart before the horse. Read more
