All Articles Tagged - USDJPY

US Open Note – Evergrande ghost haunts markets; euro weaker ahead of German election

Posted on September 24, 2021 at 1:25 pm GMT

Evergrande’s drama continues Evergrande’s drama continued to spook markets on Friday as investors had no clue whether China’s giant property developer, which owes a debt larger than the external debt many entire countries face, had successfully met Thursday’s $83.5 million coupon payment. The company now has a 30-day grace period before it declares a default, and it will not be the first time a Chinese company uses this period to arrange its obligations. Though, it’s historically proven that the wait [..]

Weekly comment – Germany votes as markets digest Evergrande

Posted on September 24, 2021 at 1:05 pm GMT

The Fed signaled that tapering will begin in November and is now split evenly on whether rates will be raised next year already. Yet, the USD couldn’t hold onto its gains as safe-haven demand cooled with Evergrande contagion worries fading. The next week will bring elections in Germany, a leadership contest in Japan, and a barrage of data releases. The highlights: Germans will go to the ballots on Sunday. The most likely outcome is a center-left coalition that pushes [..]

Week Ahead – German elections, China woes, and tons of data

Posted on September 24, 2021 at 10:50 am GMT

An action-packed week lies ahead. Elections in Germany will be crucial for Eurozone’s spending agenda, while Japan’s ruling party will also select its new leader. Meanwhile in China, the Evergrande fallout is unlikely to spiral out of control, but the upcoming PMIs will tell us whether it has already started to infect economic growth. There’s also a heavy dose of data releases from the major economies and a rare meeting of the G4 central bank governors. Fed says ‘all systems [..]

Daily Market Comment – Bond markets come alive as tighter policy looms, stock rally eases

Posted on September 24, 2021 at 9:27 am GMT

Sovereign bond yields jump on optimism and rising prospect of policy tightening Equities rebound fizzles out as lingering doubts about Evergrande cuts party short Dollar gives up all post-Fed gains but limited bounce back for riskier currencies Bond markets finally wake up to the sound of central banks US Treasury yields led the surge in global government bond yields amid a delayed response to the flagging of an imminent taper announcement by the Federal Reserve on Wednesday. Bond traders finally [..]

US Open Note – BoE cheers pound bulls; stocks maintain post-Fed advances

Posted on September 23, 2021 at 1:42 pm GMT

BoE sends some bullish shockwaves The Bank of England (BoE) left its policy settings unchanged as expected with a vote of 9-0 to keep interest rates steady at 0.1% on Thursday but provided some hawkish tilts for the pound to distance itself from the key 1.3600 support level and drift above 1.3700 against the US dollar. The BoE committee judged that despite some uncertainties that remain to be tacked, price developments over the forecast period have strengthened the case for [..]

US Open Note – Stocks’ positive tone pauses but commodities keep minor upbeat vibe

Posted on September 22, 2021 at 2:37 pm GMT

Market jitters evident prior to Fed decision; dollar stabilizes While the suspension of the debt ceiling may hit a snag in the US Senate and somewhat cause disorder in global financial markets at a time of uncertainty, investors’ eyes have turned to the FOMC meeting decision scheduled today at 18:00 GMT, for laying the groundwork regarding the taper timeline and a possible hawkish comment. Asian session gains in US stock futures have steadied ahead of the Fed, while the greenback’s [..]

Daily Market Comment – Stocks steady on Evergrande debt assurance; dollar eyes Fed taper signal

Posted on September 22, 2021 at 8:55 am GMT

Chinese stocks mixed after trading resumes as Evergrande says it will meet debt payment Dollar holds firm ahead of Fed decision; will Powell rock the boat? BoJ keeps policy unchanged, yen slips on better mood, euro and pound lag Cautious rebound underway amid Evergrande relief Equities were mostly recovering on Wednesday as market nerves were somewhat calmed after China’s troubled property giant, Evergrande, told investors it will meet the debt payment due on Thursday for domestic bondholders. However, the company [..]

Technical Analysis – USDJPY indecisive between key boundaries

Posted on September 22, 2021 at 7:32 am GMT

USDJPY used the support around 109.10 once again to stand on its feet on Wednesday after two days of declines. The tough resistance trendline drawn from the top of 111.65 remains the main target at 110.00, and the pair’s resilience above 109.00 increases the odds for an upside breakout. But the momentum indicators are not fully in line with this narrative. The RSI is below its 50 neutral mark and continues to swing in a range. The Stochastics are also following a horizontal trajectory, [..]

US Open Note – Stocks recover and dollar takes back seat

Posted on September 21, 2021 at 2:12 pm GMT

Market Sentiment picks up and central bank meetings draw focus The major US indices are gradually extending yesterday’s rebound while the dollar continues to dwindle. Nonetheless, as worries around China’s real estate giant Evergrande Group and its recent warnings of defaulting on its debt payments remain one of the global highlights, the spotlight continues to be directed around central banks. Investors continue to look for clues around meetings, with the BOJ expected to remain dovish and the Fed to comment [..]

Daily Market Comment – Calmer markets despite Evergrande risks, loonie jumps on Trudeau win

Posted on September 21, 2021 at 9:31 am GMT

Fears of Evergrande contagion ease slightly but markets remain edgy Loonie soars after Trudeau narrowly secures third term Aussie and kiwi brush off dovish reserve banks Pound up too but UK energy crisis a worry, dollar off highs Stocks bounce back after Evergrande panic Global equities were steadier on Tuesday, recouping some of the previous days’ losses, as fears of a huge spillover from Evergrande’s debt crisis subsided a little. As investors increasingly liken the Evergrande crisis with the collapse [..]

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