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The dollar was mixed in N.Y. trade on Tuesday, though activity was light overall, and ranges narrow and familiar. The euro posted gains, though continued to struggle over the 1.3500 mark, while USD-JPY edged back over 100.25, where option and Exporter backed sellers were parked. Read more
The dollar maintained a holding pattern overall. There was a brief period of price chop that led to kneejerk dollar selling after a MNI interview with PBoC Governor Zhou, though moves were not sustained. Zhou said China will move forward with market liberalisation, which will mean an end to FX intervention, wider yuan trading bands and eventually a floating currency. Read more
The dollar maintained a holding pattern , leaving EUR close to 1.3500, Cable near 1.6100 and USD-JPY just under 100.00. Demand for JPY picked up as equity markets in Asia were mixed to lower after Monday's late U.S. equity market drop. Japan's Economy Minister Amari said Japan is eyeing a new Y5 tln stimulus package, though it will not be funded with new bond issues. Read more
The dollar was soft through much of the morning session, though regained some composure after the London close. TIC outflows and softer house builders sentiment had marginally negative impact on the greenback. Initial comments from the Fed's Dudley painted a rosier picture for the U.S. Read more
The dollar consolidated. The EUR was slightly firmer intra-day, leaving it near 1.3500 as last week's dovish Yellen remarks continue to reverberate, while USD-JPY backed from 100.50 barriers as Japanese corporate flows picked up. The market welcomed China's ground breaking reforms, which covered 60 different points and included an end to the one-child policy. Read more
The dollar consolidated in Asia. The EUR was slightly firmer intra-day, leaving it near 1.3500 as last week's dovish Yellen remarks continue to reverberate, while USD-JPY backed away from over 100.00 as Japanese corporate flows picked up. The market welcomed China's ground breaking reforms, which covered 60 different points and included an end to the one-child policy. Read more
The two most important pieces of data last week were the GDP releases for Japan and the EU, both of which raise concerns. While Japan grew at a 3.8% annualized pace in the second quarter, GDP decelerated to an annualized 1.9% in the third quarter. Household consumption – which had been performing well, dropped as did exports. Read more
Monthly reports in the last week for October were all negative. Industrial production and capacity utilization decreased. Wholesale inventories increased. The Empire Manufacturing index turned negative. Third quarter unit labor costs also decreased - good for corporate profits but bad for labor/consumers, although the second quarter was revised higher. Read more
The dollar traded lower into the weekend on Friday, impacted by softer U.S. data. The Empire State index unexpectedly turned negative, while industrial production missed the mark as well, and import prices slipped less than expected. Stocks continued their march higher in the aftermath of Yellen's confirmation hearing on Thursday. Read more
Earlier this week I wrote that gas prices were at a near 3 year low, appearing to validate the suggestion I meade two years ago, that the Oil choke collar would begin to disengage this year. Obviously, paying lower prices for energy puts more money in consumers' pockets for other spending, and/or for increased saving. Read more
