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XE Market Analysis: Europe - May 25, 2021

By: XE Market Analysis

The dollar has hit a near four-month low by the measure of the narrow trade-weighted DXY USD index. The new low is 89.55, and the three-year low that was seen in the first week of January, at 89.21, is back in scope. The low in January was seen just ahead of the Georgia run-off elections that swung the balance of power in the Senate to the Democrats, which paved the way for the super-sizing of fiscal stimulus policy, which in turn supported the dollar during Q1 on the view that the outsized spending would force the Fed to taper monetary stimulus sooner rather than later. Read more

XE Market Analysis: Asia - May 24, 2021

By: XE Market Analysis

The FX market was in snooze mode to start the week, with major Dollar pairings confined to narrow trading bands. The DXY topped at 89.95 early in the session, later dipping to 89.76 lows, then steadying near 89.85. There was no data of note. Wall Street headed higher, with gains coming on easing inflation concerns. Read more

XE Market Analysis: North America - May 24, 2021

By: XE Market Analysis

The euro lifted against most currencies, providing a modicum of directional action in an otherwise quiet trading among the main fiat currencies. EUR-USD recouped about three quarters of the decline the pair saw on Friday, printing an intraday high at 1.2220, which was concurrent with the 10-year Treasury yield dipping below recent two-week lows near 1.610%. Read more

XE Market Analysis: Europe - May 24, 2021

By: XE Market Analysis

The dollar has turned fractionally softer, giving back some of the gains that it saw on Friday. Ranges among the main currencies have remained narrow, and holidays across Europe today will only exacerbate the quiet conditions. The dollar's ebb has been concurrent with the 10-year Treasury yield dipping below recent two-week lows near 1.610%. Read more

XE Market Analysis: Asia - May 21, 2021

By: XE Market Analysis

The DXY printed overnight four-plus month low of 89.65 overnight, though caught a bid through the N.Y. session, largely on the back of pre-weekend short covering. The Dollar index peaked at 90.08. Incoming data saw record highs for the May manufacturing and services ISM, which was USD supportive, though existing home sales missed expectations. Read more

XE Market Analysis: North America - May 21, 2021

By: XE Market Analysis

The dollar's softening bias showed itself again, which pushed the currency to two-day lows against the euro and yen, and a three-month low in the case of the pound, which was boosted independently by a round of strong UK data. The dollar bloc rebounded from intraday weakness during the European morning, tracking a rebound in commodity prices and a risk-on sentiment in global equity markets, which was aided by solid preliminary May PMI out of Europe and with investors having re-parked any nascent concerns about inflation. Read more

XE Market Analysis: Europe - May 21, 2021

By: XE Market Analysis

The dollar has corrected some of the gains seen following the release of the FOMC minutes from the late April meeting, which showed that "a number" Fed members thought it could be "appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases." Though we view that comment as vague with a lot of qualifiers, and not necessarily surprising, it was not to the bond market's liking, at least at maturities beyond the nearer dated. Read more

XE Market Analysis: Asia - May 20, 2021

By: XE Market Analysis

After rallying on Wednesday in the aftermath of the FOMC minutes mention of tapering, the Dollar turned broadly lower through the N.Y. session on Thursday. Treasury yields gave back all their post-minutes gains, leaving the 10-year note at 1.63% from 1.69% highs yesterday. Read more

XE Market Analysis: North America - May 20, 2021

By: XE Market Analysis

The dollar has corrected some of the gains seen following the release of the FOMC minutes from the late April meeting, which showed that "a number" Fed members were thinking about when to taper. This pushed longer-dated Treasury yields and the dollar higher, the latter of which printed a three-day high at 90.29 by the measure of the narrow trade-weighted DXY index. Read more

XE Market Analysis: Europe - May 20, 2021

By: XE Market Analysis

The dollar has corrected some of the gains seen following the release of the FOMC minutes from the late April meeting, which showed that "a number" Fed members thought it could be "appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases." Though we view that comment as vague with a lot of qualifiers, and not necessarily surprising, it was not to the bond market's liking, at least at maturities beyond the nearer dated. Read more

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