XE Market Analysis: North America - Apr 28, 2021
The dollar has posted two consecutive days of higher highs for the first time since late March by the measure of the narrow trade-weighted DXY index. The greenback printed its loftiest level on the week so far at 91.13, extending the modest rebound from Monday s eight-week low at 90.68. This has been concomitant with longer-dated Treasury yields putting in their most sustained rise in a month, with the 10-year note yield pushing on 1.65% today, up over 10 bp from the nadir seen last week. This comes with four out of five companies in the S&P 500 who have reported earnings so far having beaten expectations, and with many base metal prices having yesterday printed new trend highs, with copper, for instance, hitting a 10-year high. All eyes will be on the Fed at the conclusion of its FOMC meeting later today. There has been some speculation the he might start to hint that the Fed could start to think about tapering after the BoC trimmed
XE Market Analysis: Europe - Apr 28, 2021
Finally the dollar has found its feet, with the narrow trade-weighted DXY index posting two consecutive day of higher highs for the first time since late March. The index printed its loftiest level on the week so far at 91.13, extending the modest rebound from Monday s eight-week low at 90.68. This has been concomitant with longer-dated Treasury yields putting in their most sustained rise in a month, with the 10-year note yield pushing on 1.65% today, up over 10 bp from the nadir seen last week. This comes with four out of five companies in the S&P 500 who have reported earnings so far having beaten expectations, and with many base metal prices having yesterday printed new trend highs, with copper, for instance, hitting a 10-year high. All eyes will be on the Fed at the conclusion of its FOMC meeting later today. There has been some speculation the he might start to hint that the Fed could start to think about tapering after the BoC trimmed
XE Market Analysis: North America - Apr 27, 2021
The dollar has lifted out of an eight-week low at 90.68 by the measure of the DXY index, rising back above 91.0. EUR-USD concurrently ebbed below yesterday s low in making a nadir at 1.2057, which was seen after the pair capped out at 1.2117, and Cable posted a low at 1.3870, some 60 pips down on yesterday s peak. USD-JPY printed a one-week high at 108.43, aided by a measure of broader yen weakness after the BoJ trimmed inflation forecasts. The greenback also made headway against the Australian dollar and its dollar bloc brethren. Some position trimming has been at play into risk events, particularly the 7-year Treasury note auction in the U.S. today. The auction of 2- and 5-year notes yesterday were met with tepid demand, and some market commentaries are putting an especial focus on the 7-year auction today as a badly received auction of 7-year paper back in February was the catalyst for the sharp sell-off in global sovereign bond ma
XE Market Analysis: Europe - Apr 27, 2021
The dollar has rebounded out of a fresh eight-week low at 90.68 by the measure of the DXY index, rising back above 91.0. EUR-USD concurrently ebbed to within a few pips of yesterday s low at 1.2061, which was seen after the pair capped out at 1.2117, and Cable posted a low at 1.3870, some 60 pips down on yesterday s peak. USD-JPY printed a one-week high at 108.39, aided by a measure of broader yen weakness after the BoJ trimmed inflation forecasts. The greenback also made headway against the Australian dollar and its dollar bloc brethren. Some position trimming has been at play into risk events, particularly the 7-year Treasury note auction in the U.S. today. The auction of 2- and 5-year notes yesterday were met with tepid demand, and market commentaries are placing a heavy focus on the 7-year auction today as a badly received auction of 7-year paper back in February was the catalyst for the sharp sell-off in global sovereign bond markets. A
XE Market Analysis: Europe - Apr 26, 2021
The dollar has pegged a near eight-week low by the measure of the narrow trade-weighted DXY index, at 90.68. The 10-year Treasury note yield ticked higher, to around 1.580%, but has remained comfortably below last weeks highs and down by nearly 20 bp form the highs seen in late March. The softer profile of longer-dated U.S. yields is a consequence of the Fed s success in convincing markets that there is plenty of spare capacity in the economy, and therefore the inflation risk is limited, while sentiment in markets is somewhat cautious given the in rise in Covid cases in regions where there hasn t been relatively extensive vaccination programs. The risk wary sentiment has bolstered the attractiveness of Treasuries in a low-yield world. The dollar s softness lifted EUR-USD to a two-month high at 1.2117. USD-JPY ebbed to a low at 107.65, but remained above Friday s near eight-week low at 107.47. Cable breached above its Friday high in making a