XE Market Analysis: Europe - May 03, 2021
The DXY dollar index printed an 11-day high at 91.39, extending the recovery from the two-month low that was seen last Thursday at 90.42. EUR-USD concurrently edged out a 10-day low at 1.2014 while USD-JPY lifted to a three-week peak at 109.67. The dollar fared less well against the pound and dollar bloc currencies, remaining off its highs that were seen against these currencies on Friday. Market conditions have been quiet with China, Japan and the UK out today. Chinese and Japanese markets will remain closed through to Wednesday. The rise in U.S. Treasury yields alongside data showing a peer-beating 6.4% q/q gain in U.S. Q1 GDP, and strong personal income data, snapped the dollar out of a four-week declining phase, and we expect the currency to hold firm through to Friday s release of the April nonfarm payrolls report. This, along with data due in the interim, including the ISM manufacturing and ISM services indexes, factory orders and othe
XE Market Analysis: North America - May 03, 2021
The DXY dollar index printed an 11-day high at 91.39, extending the recovery from the two-month low that was seen last Thursday at 90.42. EUR-USD concurrently edged out a 10-day low at 1.2014 while USD-JPY lifted to a three-week peak at 109.70. The dollar fared less well against the pound and dollar bloc currencies, remaining off its highs that were seen against these currencies on Friday. Market conditions have been quiet with China, Japan and the UK out today. Chinese and Japanese markets will remain closed through to Wednesday. The rise in U.S. Treasury yields alongside data showing a peer-beating 6.4% q/q gain in U.S. Q1 GDP, and strong personal income data, snapped the dollar out of a four-week declining phase, and we expect the currency to hold firm through to Friday s release of the April nonfarm payrolls report. This, along with data due in the interim, including the ISM manufacturing and ISM services indexes, factory orders a
XE Market Analysis: Europe - Apr 30, 2021
The dollar is trading with some buoyancy after basing at new trend lows yesterday. The narrow trade-weighted DXY USD index lifted back above 90.70 after printing a two-month low yesterday at 90.42. EUR-USD concurrently ebbed back to near the 1.2100 level from its two-month high at 1.2150, and USD-JPY settled slightly off yesterday s 17-day high at 109.22. The 10-year U.S. T-note yield, which remains a fixation for forex markets, has been orbiting the 1.650% level over the last day remaining up by over 10 bp on the lows that were seen last week. A cautious sentiment has returned in global markets. The S&P 500 posted yet another record closing high yesterday, though the Nasdaq dropped back from a record intraday peak, and sentiment has subsequently soured with U.S. equity futures and Asian stock markets coming under pressure, despite Amazon reporting an earnings beat after the Wall Street close yesterday. As Reuters highlighted, just over ha
XE Market Analysis: Europe - Apr 29, 2021
The dollar resumed its now four-week down trend, earlier posting a two-month low at 90.42 by the measure of the DXY index. Speculation that the Fed might have at least hinted at a tapering, which hadn t been our view, was thwarted, and longer-dated Treasury yields and the dollar duly took a turn lower. The 10-year T-note yield was pressed back under 1.62% after yesterday foraying above 1.65% ahead of the Fed s announcement. The limited magnitude of movement shows that most market participants viewed the FOMC as being uneventful, and the Fed s description of inflation pressures as likely being transitory as unsurprising. Wall Street wasn t too inspired, either, though S&P E-mini and Nasdaq 100 futures subsequently racked up gains of over 0.5% in trading on Globex following stellar earnings reports, released after the close of Wall Street, from Apple and Facebook. Samsung subsequently followed-up with an earnings beat. In the absence of Japa
XE Market Analysis: North America - Apr 29, 2021
The dollar extended its post-Fed announcement decline before rebounding some. The DXY dollar index posted a two-month low at 90.42 before recouping to around 90.70, while EUR-USD pegged a two-month high at 1.2150 before ebbing back towards 1.2100. The lack of even a hint of a possible tapering by the Fed yesterday saw the 10-year T-note yield press back under 1.62% at the lows earlier, though the yield subsequently lifted back to 1.66% with markets anticipating a solid 5.8% y/y print on today s U.S. Q1 GDP release, alongside a spike in chain prices and an expected 84k drop in continuing claims data. S&P E-mini and Nasdaq 100 futures racked up gains of over 0.7% on Globex following stellar earnings reports from Apple and Facebook. Samsung followed-up with an earnings beat, and there were a raft of strong corporate show and tells out of Europe, too. In the absence of Japanese markets, which were closed for a holiday, most Asian stock