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XE Market Analysis: Asia - Mar 20, 2018

By: XE Market Analysis

The dollar moved higher in N.Y. trade on Tuesday, with buyers stepping inahead of what will almost surely be a 25 basis point Fed rate hike on Wednesday. The DXY topped at 90.40, a near three-week high, and closed above its 50-day moving average, which stands at 89.95. Read more

XE Market Analysis: UK Inflation Dips

By: xemarketanalysis

OVERVIEW Sterling holds its ground despite slowing inflation data. The Euro dips as the ZEW economic sentiment survey plunges. The RBA minutes point to the low-interest rates boosting employment. The US Dollar remains quiet ahead of tomorrow's FOMC rate decision. HIGHLIGHT We have seen Sterling's rally consolidate above the psychological 1.40 level against the US Dollar, despite lower than expected inflation data that showed prices growing by 2.7% y/y. US DOLLAR The focus for the US Dollar is on tomorrow’s rate decision where rates are expected to rise by 25bps to 1.50-1.75%. BRITISH POUND The Pound is steady today despite lower than expected inflation data at 2.7% y/y, and producer prices which are a pipeline inflation, rising at their slowest rate in more than a year in February at 2.6% y/y. EURO The Euro dropped in value against the US Dollar today as the ZEW economic sentiment indicator dropped from 17.8 to 5.1 as confidence is held back due to a strong Euro and concerns about a potential trade conflict. CANADIAN DOLLAR The Canadian Dollar remains almost 8% from its high in September 2017 as oil prices continue to look a little toppy. AUSTRALIAN DOLLAR The Australian Dollar has sidelined in reaction to the minutes from the RBA meeting which reported that low rates are playing a part in lowering unemployment and lifting inflation. FEATURED CURRENCY The Chinese Yuan has sidelined now for the past couple of months pivoting 6.30 against the US Dollar after strengthening from 6.60 in the fourth quarter of 2017. Read more

XE Market Analysis: North America - Mar 20, 2018

By: XE Market Analysis

The dollar has traded firmer so far today. EUR-USD dipped to the low 1.2300s, aided lower by a sub-forecast German ZEW survey. USD-JPY lifted to a three-session high of 106.86, Bloomberg reported a Japanese MoF official complaining that recent yen movements have been too volatile and trading too strongly. Read more

XE Market Analysis: Europe - Mar 20, 2018

By: XE Market Analysis

The yen traded softer, while the dollar and most other currencies traded within their respective ranges from yesterday. EUR-USD settled in the lower-to-mid 1.2300s, below the three-session high that was logged yesterday at 1.2359 following reports that the ECB is shifting its focus to the rate path. Read more

XE Market Analysis: Asia - Mar 19, 2018

By: XE Market Analysis

Stock markets on both sides of the Atlantic took a beating on Monday. Reports that Facebook users' data was used by a political advertising firm weighed heavily on the tech sector, taking FB stock down as much as 8%. Yields were lower on the risk-off backdrop, and the dollar fell broadly as well. Read more

XE Market Analysis: Brexit Transition Deal Agreed

By: xemarketanalysis

OVERVIEW The Brexit transition deal gives Sterling a welcome boost and is a welcomed relief for businesses. US Dollar focuses on the forthcoming FOMC rate decision where rates are expected to rise. The EU trade surplus disappoints as a stronger Euro starts to bite. Putin wins the election convincingly for another six-year term. HIGHLIGHT We have seen the Sterling rally as a status quo transition deal has been agreed upon. Read more

XE Market Analysis: North America - Mar 19, 2018

By: XE Market Analysis

EUR-USD wound back intraday losses that were seen in pre-Europe trading in Asia rising to the 1.2280-90 area. EUR-JPY, EUR-CHF and other euro crosses are also up, with the notable exception of EUR-GBP, which has descended further into three-month low terrain on pound outperformance, which has been bid on the expectation of positive news on a Brexit transition agreement will come from the meeting of respective UK and EU negotiators. Read more

XE Market Analysis: Europe - Mar 19, 2018

By: XE Market Analysis

Both the dollar and yen have traded firmly against most other currencies in early-week trading so far. EUR-USD has ebbed to a 17-day low at 1.2258, and EUR-JPY a two-week low, of 129.61, as a consequence. The biggest movers out of the main currencies have been AUD-JPY, NZD-JPY and CAD-JPY, which are down between 0.3% and 0.4% as the London interbank takes to its collective desk. Read more

International Economic Week in Review: Japan Is in Strong Shape

By: HaleStewart

The Bank of Japan released their latest Meeting Minutes, which contained a positive appraisal of the Japanese economy. The bank noted that several “virtuous cycles” were in play. They first noted that business profits had lifted sentiment, leading to rising investment. Read more

Central Bankers Are Starting to Push Back Against Protectionist Rhetoric

By: HaleStewart

Comparative advantage is central to the idea of international trade. It states that a country will produce more of product X if the country’s opportunity cost for the extra unit of production is lower than other choices. The easiest example is derived from the different standard of living between a developed and newly industrialized economy; in the latter, the opportunity cost of producing nearly any good is lower than the cost in a developed country. Read more


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