US dollar

Fed surprises markets with hawkish speakers – minutes

Posted on May 20, 2016 at 2:09 pm GMT

The key development of the previous few days has been the shift in expectations about a possible Fed rate hike during the June / July period. Whereas markets even a week ago attached a very low probability to a rate hike in the next two months, following this week’s Fed speakers and the release of the minutes from the April FOMC meeting, this perception has changed. The result of this has been renewed strength of the US dollar, as the [..]

Asian Session – Markets muted after disappointing Chinese data; dollar steady

Posted on May 16, 2016 at 8:36 am GMT

The US dollar was broadly steady in Monday’s Asian session but off Friday’s peak when it jumped to near one-month highs following better-than-expected data. Strong retail sales and consumer sentiment figures lifted the US currency on Friday as it reignited expectations that the Fed may need to raise rates as early as June. The greenback rose above 109 yen to a two-week high but had eased to around 108.70 yen in Asian trading today as the Japanese currency benefited from [..]

European Session – Dollar rallies after batch of solid US data, euro dips below $1.13

Posted on May 13, 2016 at 2:44 pm GMT

The US dollar was broadly stronger today, gaining most against the euro and the pound during the European session and accelerating its rally after solid US data. The US calendar had a slew of economic data out today, which included retail sales, PPI and the University of Michigan consumer sentiment report. US retail sales posted the largest gain since March 2015, as purchases rose 1.3% month-on-month in April. This figure beat the 0.8% increase that was expected and comes after [..]

Asian Session – Dollar broadly higher on hawkish Fed comments but slips against yen

Posted on May 13, 2016 at 8:48 am GMT

The US dollar moved higher in Friday’s Asian session as it was boosted by hawkish comments from Fed policymakers overnight. The greenback extended yesterday’s gains to advance against most major currencies, but it was lower against the yen as investors turned cautious against the prospects of further easing by the Bank of Japan or currency intervention by Japanese authorities. Speaking earlier today, Bank of Japan Governor Haruhiko Kuroda once again reiterated that the Bank has “ample” policy tools at its [..]

Asian Session – Dollar pulls back from highs as yen firms; kiwi jumps on RBNZ house price concerns

Posted on May 11, 2016 at 8:11 am GMT

The US dollar eased from its highs following a two-day rally as profit taking dragged the currency lower in Wednesday’s Asian session. The greenback came off from its peak against the yen at the start of Asian trading as it retreated from 109.36 yen to around 108.67 yen in late session. The yen found some support on Wednesday as the threat of immediate intervention receded. Many investors doubt whether the Japanese government would risk intervening in the currency markets before [..]

European Session – Dollar gains over 1 percent on yen

Posted on May 9, 2016 at 2:49 pm GMT

The US dollar was broadly stronger on Monday and gained over 1 percent versus the Japanese currency to 108.59 yen. The absence of key US data today helped the greenback extend gains from Friday after the currency recovered swiftly from the soft nonfarm payrolls data, with the help of comments from New York Fed President William Dudley. His comment that it was reasonable to expect two Fed rate hikes this year lent support to the greenback. The diverging monetary policies [..]

Asian Session – Dollar firms against yen on Japanese intervention warning

Posted on May 9, 2016 at 8:13 am GMT

The US dollar made some progress during Monday’s Asian trading, despite the weaker-than-expected nonfarm payrolls report released on Friday. The dollar might have been helped by the warning of the Japanese finance minister that the country was ready to intervene in foreign exchange markets if the yen’s moves were volatile enough to hurt the country’s trade, economy and fiscal policies. Apparently there was some disagreement between US and Japanese authorities, with the Americans describing the yen moves as “orderly”, while [..]

FX Daily Outlook|04-05-16

Posted on May 4, 2016 at 9:04 am GMT

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Asian Session – US dollar rebounds versus yen in volatile trading

Posted on May 4, 2016 at 7:39 am GMT

The US dollar managed to claw back some ground versus the Japanese yen during Wednesday’s trading, climbing to the 107.45 level before dropping back below 107. Thin liquidity due to a Japanese national holiday as well as heavy speculative positioning in favor of the yen that made it vulnerable to a reversal, might have exacerbated the sharp moves. The moves occurred in the absence of any fundamental announcements or other news. The US dollar also managed to preserve its previous [..]

European Session – Sterling falls after poor PMI; dollars firms on Lockhart comments

Posted on May 3, 2016 at 2:41 pm GMT

The US dollar pared back its losses in Tuesday’s European trading after the Fed’s Lockhart reignited expectations that the Fed could still be on course for two rate hikes this year. The greenback rebounded from fresh 18-month lows of 105.54 against the Japanese yen earlier today to test the 106 level in the European session. Speaking in Florida, Atlanta Fed President Dennis Lockhart told reporters that two rate hikes are “certainly possible” in 2016 and that the FOMC kept the [..]

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