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The dollar slipped some after the soft Q1 U.S. GDP revision, though overall retained its poise through the session. EUR-USD weakness was a highlight, as that pairing traded to lows of 1.2985, after peaking over 1.3050. Recent ECB dovish commentary should continue to weigh on the euro. Read more
The dollar was supported and the euro fell amid Tuesday's firm U.S. data round and an ongoing communication offensive by ECB's Draghi and co, who guided money market rates lower, put a floor under stocks and reduced eurozone bond yield spreads today. Italy tried to limit the fallout from reports that it could be nursing heavy losses on derivatives restructuring that was carried out at the height of the eurozone crisis. Read more
Equity market performance guided action across FX today. Sentiment was positive in early trade after yesterday's rebound on the SSEC into the close and a strong close for Wall Street and Europe. However, the pick up in speculative flows dampened as the session progressed. Read more
The dollar moved broadly higher in N.Y. trade on Tuesday, helped by a series of positive U.S. data releases. The May durables report was strong, while April home prices edged up, and May new home sales beat expectations. June consumer confidence was sharply higher, and the Richmond Fed index beat the mark as well. Read more
The dollar traded on the easier side as sentiment improved in Europe. EUR held firm over 1.3100, Cable was supported under 1.5450 and the commodity bloc currencies rallied. The turnaround in sentiment came after China's SSEC posted a late rebound. After losing more than 5% to move into bear market territory it cut losses to end 0.2% lower. Read more
Risk aversion continued to influence as China experienced another round of deep losses, which took the SSEC into bear market territory. However, the impact on the FX market was more muted and the G10 FX experienced an inside day. The EUR marked time close to 1.3100, Cable found a foothold over 1.5400, while AUD trade close to 0.9200. Read more
The dollar rallied further in N.Y. morning trade on Monday, taking EUR-USD to 1.3065 lows. Commodities eased back and equities sold off sharply on the back of China liquidity concerns, and as markets continued to adjust to perceptions that policy agendas at the Fed and in China are changing. Read more
Fed policy expectations and China liquidity risk continued to influence broader market sentiment. The dollar bid steepened in early Europe as Treasury yields reached year-to-date highs in Asia and added pressure on European government bonds. Stock markets in Europe fell sharply after China's SSEC closed 5.5% lower after the PBoC said banking system liquidity was at reasonable levels, suggesting that it would not come to the aid of banks, which were pummelled in Asia. Read more
The dollar held steady as Fed policy tapering concerns continued to influence, leaving EUR close to 1.3100 and Cable under 1.5400. China liquidity risk remained after an editorial by Xinhua news said Beijing would not take an extra measures at this time to deal with the squeeze in money market rates. Read more
The dollar firmed in N.Y. trade on Friday, though volatility was substantially lower than the previous two sessions. The same applied to equity markets, where prices stabilized after two days of heavy selling. There was no U.S. data to speak of, and focus was largely on follow through dollar buying. Read more
