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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

XE Market Analysis: Asia - May 19, 2021

By: XE Market Analysis

After advancing modestly in London morning trade, the Dollar pulled back through the N.Y. morning session. Overnight, the DXY matched the three-month low of 89.69 seen on Tuesday, later topping at 90.04, then slipping to 89.76 at mid-morning. The minutes from the April 27-28 FOMC meeting got some market reaction, with the Dollar heading higher after the Fed said “a number of participants suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases". Read more

XE Market Analysis: North America - May 19, 2021

By: XE Market Analysis

The dollar lifted out of lows as risk appetite soured in global asset markets, while the dollar bloc and other cyclical currencies wobbled. A side theme was provided by the euro, which managed to whittle out across-the-board gains, which saw EUR-USD print a four-month high at 1.2245, EUR-JPY a 37-month high, EUR-GBP a two-day peak, and EUR-AUD a three-month high. Read more

XE Market Analysis: Europe - May 19, 2021

By: XE Market Analysis

The euro has whittled out across-the-board gains, which has seen, for instance, seen EUR-USD print a four-month high at 1.2245, EUR-JPY a 37-month high, EUR-GBP a two-day peak, and EUR-AUD a three-month high. There has been no specific catalyst, though market commentaries have for some time been recognizing the rapid improvement in the Covid situation across most of continental Europe amid a combo of accelerating vaccination supply and distribution. Read more

XE Market Analysis: Asia - May 18, 2021

By: XE Market Analysis

The Dollar was broadly lower in N.Y. on Tuesday, leaving the DXY near three-month lows of 89.69. Stalling Treasury yield rises have dented USD sentiment this week, following the spike up seen last week following hot U.S. prices data. The rise in rates, saw the Greenback head higher as well. Read more

XE Market Analysis: North America - May 18, 2021

By: XE Market Analysis

The dollar has tracked lower, which shouldn't be too surprising given the prevailing buy-in of the Fed's transitory narrative on inflation alongside the fact that the U.S. inflation rate is markedly higher versus peers, which imparts (all else equal) a weakening dynamic on the nominal value of the greenback. Read more

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