Articles

December 16th, 2016 - FX: Don’t Bet on Year End Profit Taking Daily FX Market Roundup 12.16.16 As we approach the end of the year, many investors AND central bankers are hoping for some year end profit taking in the U.S. dollar and we saw a hint of that on Friday. Being a dollar bull has paid off handsomely over the past 2 months with the greenback rising 15% against the Japanese ...

December 15th, 2016 - Dollar is on Fire, Is Euro Headed to Parity? Daily FX Market Roundup 12.15.16 The U.S. dollar is on fire, rising to its strongest level in more than 13 years. In the past month alone, the Dollar Index is up more than 3 percent and in the last 4 months it has appreciated nearly 10%. With USD/JPY breaking above 118 and EUR/USD breaching 1.04, many investors are ...

December 14th, 2016 - USDJPY Breaks 117 as Fed Sees 3 Hikes in 2017 Daily FX Market Roundup 12.14.16 The U.S. dollar traded sharply higher against all of the major currencies today on the back of the Federal Reserve’s monetary policy announcement. No one was surprised by the Fed’s 25bp rate hike but the dot plot forecast shows policymakers looking for 3 rate hikes in 2017. This ...

December 11th, 2016 - Our Fed Preview and Dollar Outlook The last time the Federal Reserve tightened monetary policy was in December 2015 but that will change in a few days with the U.S. central bank preparing to raise interest rates for the first time in a year. A lot has changed over the past year but the one thing that has not is that monetary policy announcements are big market mo...

December 9th, 2016 - Will the Fed Kill the Dollar Rally? Daily FX Market Roundup 12.09.16 With 3 central bank rate decisions on this past week’s calendar, it has been a very lively week in the foreign exchange market. The greenback traded higher against all of the major currencies, rising to its strongest level versus the Japanese Yen in 10 months. Since no major U.S. economi...

December 8th, 2016 - The ECB Wants Euro to Fall Daily FX Market Roundup 12.08.16 The European Central Bank wants the euro to fall and that is exactly what the euro did after the monetary policy announcement. Economists had been looking for asset purchases to continue for only 6 months beyond the previous soft end date and instead they were extended by 9 months from March to Decembe...

December 7th, 2016 - Euro - Here’s What We Expect from the ECB & Euro Daily FX Market Roundup 12.07.16 The euro is trading higher ahead of this year’s final European Central Bank monetary policy meeting and the big question tomorrow is whether there will be an ECB surprise that triggers the same 4-cent (400 pip) move in EUR/USD that we saw in December 2015. Around this time las...

December 6th, 2016 - CAD: Will Trump Worry the Bank of Canada? Daily FX Market Roundup 12.06.16 After the Italian referendum, the forex market turned its focus to 3 monetary policy announcements. The Reserve Bank of Australia was the first central bank to meet last night – they left interest rates unchanged and offered a benign outlook for the Australian economy. While the RBA sa...

December 5th, 2016 - 3 Reasons Why EURO Verticalized After Italy Vote Daily FX Market Roundup 12.05.16 Many investors may be wondering why EUR/USD verticalized after the Italians voted against Prime Minister Renzi’s Senate reforms especially after EUR/USD dropped within a few pips of 1.05. We have identified at least 3 reasons for the reversal: 1. German – U.S. yield spread ...

December 2nd, 2016 - The Dollar Could Correct Further After Muted Jobs Report Daily FX Market Roundup 12.02.16 With less than 2 weeks to go before the December Federal Reserve meeting, investors were not impressed by the latest U.S. jobs report. They were happy to see job growth rise by 178K, but the increase was less than 200K and accompanied by a drop in average hourly earnings. ...

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