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OVERVIEW The American dollar is up by two-tenths of a percent on a basket of G-10 currencies. Once again, as the revised Brexit date grows nearer, and there is no orderly separation deal in place, there is pressure on the GBP. Negative economic data out of Germany and falling demand for goods and services is pushing the euro downwards. Read more
The Dollar saw a two-week low against the Yen, but otherwise held steady-to-firmer, gaining most notably against the Euro and the Pound, the former underperforming following sub-forecast Eurozone PMI data and the latter taking a rotation lower after UK Prime Minister Johnson downplayed near-term prospects for a breakthrough in his negotiations with EU leaders on Brexit. Read more
The Pound has come under modest pressure at the open of the London interbank market, with markets reacting to UK Prime Minister Johnson remarks on Brexit, that he did not wish "to elevate excessively the belief that there will be a New York breakthrough," referring to the meetings he has scheduled this week with various EU leaders and officials at the UN General Assembly in New York. Read more
FX trade was relatively quiet on Friday, with no data to drive prices, and a fairly neutral risk backdrop. This said, the Dollar managed modest gains through the session, taking the DXY from opening lows of 98.43 to a 98.63 high. Wall Street was narrowly mixed, while Treasury yields edged a bit lower. Read more
The Dollar majors have seen some chop but, for the most part, little net directional changes. EUR-USD has settled to an orbit of the 1.1050 level, earlier printing an intraday high at 1.1067 before gravitating back below 1.1050. The pair has remained comfortably within its range from yesterday. Read more
The Dollar headed higher in N.Y. morning trade on Thursday, guided by decent incoming U.S. data. The DXY bottomed at 98.25 at the open, making its way to 98.42 after the London close. From there it was downhill, as GBP-USD and EUR-USD rallied following a report that EU commission president Junker said he thought a Brexit deal could be done by the end of October. Read more
OVERVIEW FOMC executives were divided in this week's meetings as to whether further interest rate cuts this year are justified. They did manage to pass a quarter-point reduction, however. Hong Kong's central bank followed the Fed's lead with a quarter-point interest rate reduction. Japan and Switzerland's central banks are holding their interest rates. Read more
The Dollar has traded mixed so far today, after rallying in the wake of the Fed's policy announcement. The Fed did the expected and cut the funds rate band by a quarter point to 1.75%, yet the decision came at the expense of a cohesiveness among policymakers, with the vote being 7-3 (the three dissenters is the most since 2016), with the two hawks from July, George and Rosengren, again voted for no change, while the uber-dove Bullard argued for an aggressive half point easing. Read more
The FX market was quiet ahead of the FOMC announcement in N.Y. on Wednesday, with major pairings stuck inside of narrow trading bands. Incoming U.S. data was light, with housing starts much firmer than expected. There was little market reaction, however. Read more
OVERVIEW The FOMC is expected to introduce an interest rate cut in today's monetary policy decision. PM Johnson insists the UK will leave the EU on October 31st, though equally strong statements from opposition suggest it won't happen without a deal. The Aussie and Kiwi dollars are both sinking slowly HIGHLIGHT The greenback keeps a positive tone, trading broadly higher against its major peers this morning. Read more
