The yen hit a three-week low on Monday on expectations the Bank of Japan could start lending to banks at negative rates, while sterling hit a five-week high in reaction to President Barack Obama urging Britons to stay in the European Union.The yen fell...
The USD tends to appreciate strongly when risk aversion is high or when the US economy is outperforming. Neither condition is currently in place. China’s growth concerns have temporarily receded and commodity prices are rallying. And with a cautious Fed and accmmodative central banks...
It was the exception, rather than the rule, that the volatility in the euro yesterday was more down to market positioning that the changing messages through Draghi’s press conference.There were residual expectations for further easing measures, so the initial rally was more to do...
Asian shares slid from a 5 1/2-month high on Friday on disappointing earnings from U.S. blue chip companies, but Japanese shares surged after a media report about a possible Bank of Japan policy change weakened the yen.Japan's Nikkei erased earlier losses to end the...
Having supposedly thrown everything at the deflationary problem at their early March meeting, there is little expectation that the ECB is going to have anything substantial at today’s gathering to present to markets.Instead, we’re likely to get a PR job on the signs that...
Since the Fed announced its first rate hike in mid-December last year the dollar has weakened by around 4.5% against the euro from approximately 1.08 to 1.13.It is not that unusual for the greenback to depreciate following the initial rate increase in a new hiking...
The chance of British voters opting to leave the European Union has risen 3 percentage points to 34 percent following finance minister George Osborne's warning that a Brexit would cost each household thousands of pounds, bookmaker Ladbrokes said.Ladbrokes said Britain voting in a June...
The 105 level in USDJPY could well become the ‘line in the sand’ for the BoJ that may spur the bank back into action.To see that, we take a more detailed look at the longer-term path of USD/JPY and PPP. It suggests that the...
Wall Street rallied on Wednesday, boosted by JPMorgan's first-quarter results, and unexpectedly strong Chinese trade data raised hopes that the world's second-largest economy was recovering.JPMorgan, the first of the big banks to report earnings, posted higher-than-expected revenue and profit, sending its shares up 4.2...
The Canadian dollar was making new highs for the year yesterday against the background of a weaker Greenback. The past three sessions have seen USDCAD move lower, taking it below the 1.30 level on a sustained basis.It’s against this backdrop that the Bank of...