Currencies - Financial Daily News Site

ECB chief Lagarde also confirmed that it’s July rate-hike plan was proceeding

ECB chief Lagarde also confirmed that it’s July rate-hike plan was proceeding

Notes/Observations -Risk appetite gained traction as it fed off the news that China halved the quarantine time for international travelers. Beijing and Shanghai declared zero Covid cases for the first time in months. Shanghai Disneyland set to reopen on June 30th. -Global macro revolved around the G7 and NATO meetings as a comments from officials … Read more

Dollar finds support as investors put safety first

Dollar finds support as investors put safety first

The dollar and Japanese yen both found support in a choppy Asia session on Monday, benefiting from a bid for safety as investors worried rising interest rates and softening economic data could signal a global recession is on the horizon. While stocks followed Wall Street higher, currency traders were wary of extending Friday’s dollar selling … Read more

Focus continues to be on central banks’ rate path

Focus continues to be on central banks' rate path

Notes/Observations -European economic data continues to miss expectations as Spain GDP and mortgage lending, Hungary wages, Turkey capacity and confidence, Czech confidence, Italy confidence, Germany IFO survey and UK retail sales all came in worse than forecasted. -As Finland and Sweden markets close for Midsummer’s Eve holiday, the UK and Germany take focus with light … Read more

Weak PMI readings for Europe add to recession concerns

Weak PMI readings for Europe add to recession concerns

Notes/Observations – Central banks continued to hike to address inflation (Philippines, Norway in session). Moves recirculate recession concerns and raise second thoughts over rate path trajectories. – Collection of interest rate decisions this morning with both Norway and Philippines hiking 50bps and 25bps respectively, citing inflation as the fundamental target. Indonesia Central Bank left rates … Read more

Quiet start to week, US market closed for holiday

Quiet start to week, US market closed for holiday

Notes/Observations – Quiet EU morning session as the US markets are closed for Federal holiday. – Slowing in US economic momentum cast some doubt over interest rate rise expectations for the Fed. – While liquidity is reduced, risk appetite has crept back in slightly. Asia closed mixed, with Nikkei225 underperforming at -0.75%. EU indices start … Read more

The biggest losers and the biggest winners from the Fed’s interest rate hikes

The biggest losers and the biggest winners from the Fed's interest rate hikes

At its policy meeting on Wednesday, the Fed raised interest rates by 0.75 basis points. The following two trading days after the announcement were tough for some indexes and a little quiet for some other pairs and commodities. The energy sector wasn’t spared from the impact of the interest rate rise. The prior week in … Read more

BOJ sticks with its yield control

BOJ sticks with its yield control

Notes/Observations – Risk aversion takes a short break as sentiment continues to pivot around inflation and growth concerns. – EU Finance Ministers meet (EcoFin) and trying to get an agreement on the elusive global minimum tax. – BOJ defies speculation it would follow its global peers and move toward tightening; no plans to raise ceiling … Read more

Dollar rebounds alongside yields ahead of Powell speech

Dollar rebounds alongside yields ahead of Powell speech

Here is what you need to know on Friday, June 17: Following Thursday’s heavy selloff, the greenback is holding its ground against its rivals early Friday. The benchmark 10-year US Treasury bond yield, which lost nearly 3% on Thursday, is now up more than 1% on the day and the US Dollar Index edges higher … Read more

SNB delivers a bombshell rate hike, risk aversion sentiment percolates

SNB delivers a bombshell rate hike, risk aversion sentiment percolates

Notes/Observations – Central banks continued to hike to address inflation concerns. – A surprise 50bps raise in key rates by Swiss Central Bank (SNB) marks the first hike in 15 years and sends the SMI tumbling and CHF currency higher. Comments from SNB President Jordan cite that inflation is spreading to goods and services that … Read more