Tag: Forex

The week after the main Central Banks announced their interest rates a repricing of expectations took hold. The USD was once again the main winner as markets began pricing in an interest rate rise by June 2022 as inflationary pressures continue to build. US consumer inflation was the market driver as CPI moved to 6.2%… The post Cromwell FX Market View Interest Rate Repricing appeared first on JP Fund Services.

Inflation data reported on the high side in the US with the release of the October CPI numbers, extending the Dollar’s rally over the weekend. The impact this had on other financial markets saw elevated volatility levels in bond markets, as well as unsettled trading patterns for US equities. Across the Atlantic, European equity markets… The post FX Market View #32 Dollar extends its Rally following high US CPI data appeared first on JP Fund Services.

Central banks pushed back against the markets hawkish interest rate expectations last week. RBA started the week and set the tone. While ending the yield curve control, any decision to raise interest rats in 2022 was called a complete overreaction. This pushed AUD to be the worst performer of the week. However the largest surprise… The post Cromwell FX Market View Central Bank Surprise? appeared first on JP Fund Services.

The Dollar held a firmer stance at the end of last week, as major central banks pushed against the markets discounting future tightening. First up in this regard was the Bank of England decision to hold rates, despite the market expecting a hike. Then there was the dovish tapering announcement from the FED, which initiated… The post FX Market View #31 Dollar strengthens as central banks push back against further tightening appeared first on JP Fund Services.

The Euro ended the week as one of the worst performers as the post ECB rally faded. Markets see the Eurozone lagging other major central banks in reducing their stimulus plans and raising interest rates. Australian Dollar ended the week the strongest of the major pairs as the RBA stopped defending the yield curve and… The post Cromwell FX Market View Euro selloff to continue? Fed and BOE meet appeared first on JP Fund Services.

Global yields have firmed this week with a majority of the currency majors paring gains against the Dollar. As opposed to the pattern that developed in the week earlier, the currencies from higher yielding currencies lost ground against the greenback. Most notably, it was the Norwegian and New Zealand currency that underperformed the most against… The post FX Market View #30 Dollar is poised for a rally during a week of major announcements appeared first on JP Fund Services.

The US dollar drifted lower throughout the week continuing its negative correlation with risk assets. Optimism in risk assets meant the USD lost ground against commodity pairs such as NZD and AUD. Fed Chairman Powell spoke and he confirmed that the taper is coming with a base case start of November. We still see a… The post Cromwell FX Market View Dollar drifted as Fed taper all but confirmed appeared first on JP Fund Services.

As we approach the tail-end of the first month in the last quarter of the year, one key macro view on the week ahead is the preliminary estimates of US Q3 GDP data. The market will look to assess how resilient the US economy is, and how it is hold up against a backdrop of… The post FX Market View #29 Dollar holds in narrow range ahead of US Q3 GDP data appeared first on JP Fund Services.

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The Yen selloff continued through the week as a broader risk on strategy was adopted which spilled over into USD pressure. With little economic announcements the market was left to it's own devices and the continued strength in energy and commodity prices pushed the main commodity backed currencies higher.  The USD long term strength remains… The post Cromwell FX Market View Strong Energy and Commodities Dominate appeared first on JP Fund Services.

US equities traded higher last week as they rallied on strong earnings reports, which in turn helped global stocks to achieve multi-session gains. As a result the Dollar softens its stance against the majors with the exception to the Yen, despite benchmark yield offerings slight gains. In other markets Gold was unable to sustain any… The post FX Market View #28 Markets driven by high energy prices and low Chinese growth data appeared first on JP Fund Services.

Despite a disappointing NFP on Friday the Dollar remained generally in control during the week. Yen lost across the board as treasury yields continued to rally. New Zealand dollar lost ground despite the RBNZ delivering its anticipated rate hike. Euro lost ground again as inflation pushed up to 3.4% YoY. Eurozone had expected higher inflation… The post Cromwell FX Market View NFP disappoint but USD remains in control appeared first on JP Fund Services.

The news of last week was how the Dollar would respond to the NFP data being released on Friday. Estimates were pointing towards continued US economic growth, however the market uncertainty resulted in mixed Dollar views ahead of the jobs report. The Scandies lead the way forward for the majors, posting gains against the greenback… The post FX Market View #27 Dollar remains mixed in response to lower US jobs data appeared first on JP Fund Services.

The USD gained across the board as stocks continued to falter. This led to a broader stronger greenback. NZD was the worst performer as further lockdowns due to rising COVID infections led to traders pushing back the chance of a rate hike from October to later in the year. The Canadian Dollar continued to gain… The post Cromwell FX Market View Greenback Returns to Dominance appeared first on JP Fund Services.

During the past month the Dollar has been trending higher against the majors, on the back growing investor sentiment towards FOMC rhetoric supporting a rate hike later this year. The Fed will not be the first central bank of a high income country to raise rates, as Norway lead the way last month. Second place… The post FX Market View #26 Interest rates and risk drive Dollar higher appeared first on JP Fund Services.

The USD was mostly flat against European pairs as continued issues around gas supply and the risk of inflation muted any gains against the greenback. Yen was the largest winner as a hawkish FOMC meeting accelerated treasury yields. The Canadian Dollar was the weeks best performer helped in most by a continuing strong oil price,… The post Cromwell FX Market View Yen loses as Fed remains Hawkish appeared first on JP Fund Services.

From the beginning of last week, the global markets were depleted of any sustainable risk appetite as the news from the collapse of China’s Evergrande was absorbed. This lifted the Dollar as investors sought safe-haven assets to protect investment portfolios against further downside pressure. As a consequence, the initial Dollar sell-off following the FOMC meeting… The post FX Market View #25 Dollar Gains on Market Uncertainty as Risk Abates appeared first on JP Fund Services.

Dollar gains on market uncertainty as risk abates From the beginning of last week, the global markets were depleted of any sustainable risk appetite as the news from the collapse of China’s Evergrande was absorbed. This lifted the Dollar as investors sought safe-haven assets to protect investment portfolios against further downside pressure. As a consequence,… The post FX Market View #25 appeared first on JP Fund Services.