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The dollar headed higher as yesterday's FOMC minutes elevated U.S. yields. However, it still left unanswered questions. This is likely to raise the significance of today's jobless claims data, which will provide more important information ahead of the September NFP release. Read more
The dollar traded on a firmer footing in the wake of the FOMC minutes. The Fed was mixed on timing, but intends to taper at some point. However, the lack of clarity resulted in more pressure on Asian stocks and this weighed on risk appetite early on. Sentiment improved during the Asia afternoon after China HSBC flash manufacturing PMI came in at 50.1 in August from 47.7 in July. Read more
The dollar rallied through the morning session on Wednesday, though trade was relatively quiet into the release of the FOMC minutes. Better housing data likely helped USD sentiment early, as did defensive reduction of short USD positions. The dollar rallied after the FOMC minutes, as yields moved higher with news that the Fed was mixed on timing, but intends to taper at some point. Read more
The dollar found light support against the FX majors ahead of the FOMC minutes. Movement across risk assets remained defensive, but the impact wasn't felt in the majors. However, the commodity currencies remained under pressure as market participants continue to digest the implications of reduced central bank policy stimulus. Read more
The dollar consolidated against EUR, GBP and CHF in Asia. There was further price chop via JPY and AUD, but overall activity was quieter than recent sessions as investors turned their focus to Fed policy ahead of today's FOMC minutes. USD-JPY found support on dips, leaving the 97.00 level intact and it managed to carve out a rally over 97.50 despite the latest news that the Fukushima nuclear plant had experienced its worst leak for two years. Read more
The dollar moved lower versus the European majors and the yen in N.Y. on Tuesday, while commodity backed currencies slipped on Asian growth concerns. EUR-USD moved to trend highs over 1.3450, as USD-JPY dipped back under 97.00 before recovering some. USD-CAD touched 1.0400, as AUD-USD fell under 0.9030 from over 0.9200 on Monday. Read more
It was a choppy session in FX. Early action was dominated by deleveraging as Asia FX came under more pressure amid capital outflows from IDR and INR, which triggered intervention by local reserve managers. AUD and NZD also fell sharply on dovish policy rhetoric from the RBA and RBNZ, along with proxy selling by fund names that were betting on more Asia market stress. Read more
The downturn in global equity markets on Monday continued in Asia and this kept JPY and CHF supported on dips. The dollar was steady against the majors, which maintained levels close to Monday's close, while AUD and NZD fell sharply on central bank rhetoric and a negative spill over from emerging FX. Read more
FX trade was extremely quiet in N.Y. on Monday, with no data, and largely flat equity markets keeping direction plays to a minimum. Treasury yields firmed up a bit, perhaps keeping the greenback's downside in check in afternoon trade. USD-JPY however, did pull back modestly in late dealings, after failing to hold the 98.00 handle, That pairing eased back toward 97.70 into the close. Read more
Most of the activity of any significance came late on in the European morning after a very quiet start. Summer trading conditions left larger players out of the market initially, leaving the USD mildly supported after last week's bout of repositioning ran its course. Read more
