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The dollar will open in Europe firmly, underpinned by the FOMC minutes to the late July Fed policy meeting, released after the London close yesterday. The Fed noted a better than expected trajectory in the labour market, which saw Treasury yields tick higher and the Bund over T-bond yield differential drop to new cycle lows below -144 bp, which weighed on EUR-USD. Read more
The dollar softened marginally through the morning session, before turning sideways ahead of the release of the FOMC minutes. The dollar rallied broadly after the minutes, taking EUR-USD to trend lows of 1.3260 from around 1.3290, and USD-JPY up to 103.74 from 103.35. Read more
Over the last several months economic releases from the largest EU economies have been a bit more negative, increasing the possibility that the EU will (once again) sink back into a technical recession. However, while the overall picture shows one of meager growth at the macro level, the underlying numbers tell us we might as well label the EU as a region in a permanent recession. Let's start with Germany, where the latest Q/Q GDP growth was a negative -.2%: And the Bundesbank has downgraded its growth forecast for the country largely as a result of external tensions such as those in the Ukraine. Read more
The dollar extended gains against the euro and yen, among other currencies. EUR-USD has logged an 11-month low of 1.3285 after breaching 1.3300 and last November's 1.3295 low, and USD-JPY spiked to a four-month highs above 103.30. The greenback has been unpinned following net positive U.S. Read more
The USD rallied again, with EUR-USD making a fresh nine-month low of 1.3300, bringing last November's 1.3295 low into scope, and USD-JPY spiking to a four-month high of 103.26. Elsewhere, GBP-USD clocked a new four-month low of 1.6601, and AUD-USD one-week low of 0.9278. Read more
The dollar rallied again on Tuesday, taking EUR-USD to new trend lows of 1.3314, and USD-JPY near 102.90. Markets were buoyed by strong housing data, while a relatively calm geopolitical backdrop saw Wall Street rally again, and risk levels in general improve. Read more
The drift lower in interest rates this year looks like it is feeding through into new housing. In general, in the past, a 1% change in interest rates has led to an approximate 100,000 change, annualized, in housing permits. The rise in interest rates of over 1% at midyear 2013 fed through into a complete halt in growth in new home construction. Read more
The dollar was bid today, aided by a sharp dive in Cable to a four-month low on sub-expectations U.K. inflation data, while EUR-USD edged out a one-week low of 1.3343 and USD-JPY a two-day peak at 102.68. The NZD and the AUD were also on the move, in opposite directions. Read more
The dollar was mostly firmer in N.Y. trade on Monday, largely as a perceived improvement in the risk backdrop helped sentiment. Wall Street rallied strongly, as oil and gold prices fell, and Treasury yields inched a touch higher. Home builder sentiment improved in August, which helped the greenback as well. Read more
Narrow ranges prevailed once again in pre-European trade in Asia. EUR-USD flat-lined just below the 1.3400 level, and USD-JPY posted a 102.24-40 range. Cable firmed fractionally, but remained below Friday's 1.6734 peak. BoE boos Carney sounded hawkish remarks at the weekend, saying that the U.K. Read more
 sink back into a technical recession. However, while the overall picture shows one of meager growth at the macro level, the underlying numbers tell us we might as well label the EU as a region in a permanent recession.
Let's start with Germany, where the latest Q/Q GDP growth was a negative -.2%:
And the Bundesbank has downgraded its growth forecast for the country largely as a result of external tensions such as those in the Ukraine.&p[images][0]=//xecommunityassets.s3.amazonaws.com/DomesticProductQuarter.png){kind=link}
