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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
The dollar eased a touch after it corrected overbought levels, while stocks and commodities were also steadier compared with Thursday's levels. Europe got positive guidance from a late Nikkei rebound, but the rest of Asia was under water on China liquidity concerns and Fed tapering fears. Read more
The dollar eased a touch after it corrected overbought levels. However, sentiment was still negative, leaving stocks under pressure and commodities remained on the backfoot, albeit off yesterday's lows. USD-JPY was choppy due to early weakness in stocks, though the tone improved as the Nikkei moved into positive. Read more
The dollar continued its post-FOMC rally, moving broadly higher through the morning session. Risk appetite overall was crushed, and weighed heavily on equities and commodities. U.S. economic data was mixed, with jobless claims a touch firmer and leading indicators a tick lower than expected. Read more
The European morning was dominated by Wednesday's Fed policy statement, which opened the door for policy tapering later this year if data continued to improved. Rising expectations of reduced central bank policy stimulus weighed heavily on bonds, stocks and commodities. Read more
FX trade was dead sideways into the FOMC on Wednesday, as traders sat on their hands into the announcement. The diminishing downside risks to the economy noted in the FOMC statement, suggested a reduction in QE purchases is a real potential over the second half of the year. Read more
