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XE Market Analysis: Asia - Dec 14, 2017

By: XE Market Analysis

The dollar was mixed in N.Y. trade on Thursday, buoyed early by solid U.S. retail sales figures, and a dovish ECB presser. EUR-USD topped at 1.1862 early, before fading to 1.1772 lows. USD-JPY held over 112.50 until Wall Street faltered, then dipped to 112.09 lows. Read more

XE Market Analysis: North America - Dec 14, 2017

By: XE Market Analysis

The dollar recovered some of the ground it lost following the U.S. CPI miss and in the wake of the Fed's post-policy meeting statement yesterday. EUR-USD has ebbed into the lower 1.18s. USD-JPY clocked a rebound high of 1.1288 after logging a logging a five-session low of 1.1246 in Tokyo trade. Read more

XE Market Analysis: Europe - Dec 14, 2017

By: XE Market Analysis

The USD index (DXY) fell 0.8% over the last day in logging a eight-day low of 93.34 during Asian trading today. The index has since settled around 92.45. The losses follow yesterday's cooler than expected CPI data out of the U.S. ,which was followed by an as-expected 25 bp rate hike from the Fed, while retaining the outlook for three tightenings in 2018 in its dot-plot, rather than four, which had been speculated on by markets. Read more

XE Market Analysis: Sterling Stable as PM May Allows Final Vote on Brexit Withdrawal Agreement

By: xemarketanalysis

OVERVIEW GBP is buoyed by average earnings creeping higher. US Dollar trades on the back foot as the inflation rate excluding food and energy came in at 1.7%, against expectations of 1.8%. The Euro remains stable as Merkel tries to put together her government. The Swedish Krone gains helped by a boost in inflation. HIGHLIGHT British PM May has announced that a final Brexit withdrawal agreement will be placed by both the House of Parliament and House of Lords. US DOLLAR The US Dollar remains quiet as we await the FOMC meeting results where it is widely expected for them to raise interest rates by 25bps. Read more

XE Market Analysis: Asia - Dec 13, 2017

By: XE Market Analysis

The dollar dropped early on, as core CPI was cooler than expected. The unit stayed down into the FOMC announcement, and fell after the as-expected 25 basis point Fed rate hike, then quickly headed above levels just prior to the announcement, before dipping again. Read more

US Bond Market Week in Review: The Fed Is Chasing An Inflation Ghost

By: HaleStewart

The Fed voted to raise rates an additional 25 basis points. After noting the economy was growing solidly, the observed: Consequently, the Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong. Read more

Fed rate hikes and the Phantom Menace of inflation

By: New_Deal_democrat

With this morning's CPI report, inflation has run at a whopping 2.2% YoY. Core inflation is still under 2%. In other words, if the Fed is fighting inflation, it is a Phantom Menace. While in most cases, as shown in the first graph below showing the last 70 years, the Fed has raised rates generally coincidentally with an increase in inflation, three times before, the Fed has raised rates in the face of an inflation phantasmagoria: Note that the late 1950s and 1960s, and again in 1994 there was a Fed rate hike campaign in the face of no or virtually no increase in inflation. Let's take a closer look at what happened each time. Read more

XE Market Analysis: North America - Dec 13, 2017

By: XE Market Analysis

The dollar recovered its poise during the London AM session after taking a hit during the Asian session on news that a Democratic candidate won a Senate seat in the state of Alabama for the first time since 1992, which was taken as a possible threat to the implementation of the Trump agenda. Read more

XE Market Analysis: Europe - Dec 13, 2017

By: XE Market Analysis

USD-JPY took a 30-pip clobber on news that Democrat Doug Jones won the election for an Alabama senate seat, the first time there's been a Democratic Senate member from that state since 1992. The market narrative is that this will erode the chances for corporate-friendly legislation in the U.S., with the Republican advantage in the Senate ebbing to 51 to 49 from 52 to 48 (aside from the fact that the election result bods badly for the GOP in the mid-term elections in November 2018)) . Read more


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