## United States The recent uptick in the US dollar has continued, although its momentum paused during the European morning session. The question remains whether North American markets can sustain this momentum ahead of the FOMC meeting. There is speculation over a dovish dissent despite the likely decision to hold rates steady, coupled with a disappointing ADP report showing unexpected job losses in June. The dollar achieved new monthly highs against the euro and the British pound before retracing slightly, …
Tag: Bank of England
### United States The United States and the European Union have struck a trade agreement that is less severe than anticipated, reducing the uncertainty that has been troubling businesses and investors. In May, President Trump threatened a 50% tariff on most EU goods but agreed to a 15% rate for items such as automobiles and pharmaceuticals, excluding metals. Nonetheless, a debate persists on whether a quota and tariff system will apply to steel and aluminum. Reportedly, the EU also committed …
United States The initial expectation was that after reaching lows in early July, the greenback would retrace its previous downward movement starting around June 23, with signs of this ending by July 17. Although a slight pullback was anticipated last week, recent price actions suggest the dollar’s upward correction may not yet be complete. This becomes more complicated due to the upcoming busy week, where each of the G7’s central banks, specifically the Federal Reserve, Bank of Japan, and Bank …
## United States As the week comes to a close, the US dollar (USD) is showing strength, propelled primarily by the recovery in US interest rates. This move has seen the dollar rise towards JPY148 from below JPY146, amid rising expectations that the Bank of Japan might increase rates later in the year. The week has been marked by a series of events that have bolstered the dollar, including a sixth consecutive decline in weekly jobless claims and a stronger-than-expected …
### United States With a new US-Japanese deal on the table and an ongoing tariff truce between the US and China, perceptions of reduced tail risks in US foreign economic policy have boosted market confidence, driving equity prices higher. The dollar remains mixed in response. Weekly jobless claims in the US are anticipated today, continuing a five-week declining trend, marking the longest short-term improvement since late 2022. However, attention is on next week’s non-farm payroll report, expected to show a …
# United States The United States has successfully negotiated a trade agreement with Japan, Indonesia, and the Philippines. Meanwhile, Treasury Secretary Bessent has suggested that the existing US-China tariff truce, which is set to conclude on August 12, is likely to be extended in the coming days. The US dollar has witnessed a consistent decline for the third consecutive session, with the Dollar Index recording a cumulative loss of approximately 1.4%. This decline has retraced 61.8% of the gains seen …
### United States The foreign exchange market remains quiet today, with the US dollar showing a mixed performance against the G10 currencies. Most currencies are relatively stable, fluctuating only by about 0.1%, with thinner traded currencies like the New Zealand dollar and Norwegian krone more volatile. Emerging market currencies are also mixed, hovering around +/- 0.2%. The looming expiration of US “reciprocal tariffs” scheduled for August 1 is causing some anxiety in the markets, fueling hopes for last-minute agreements. In …
### United States At the start of the week, the US dollar showcased a softer trend, yet still navigates through North American markets where recently it has exhibited a stronger performance compared to other markets. Notably, the focus this week for the US will be relatively muted in terms of data releases and communication from Federal Reserve officials as they await the FOMC meeting at month’s end. However, Fed Chair Powell is set to deliver welcoming remarks at a regulatory …
### United States Last week, the US dollar appreciated against G10 currencies and most emerging market currencies. This upward movement has been largely driven by rising US rates. However, signs suggest this dollar recovery might be slowing. Notably, the US two-year yield ended the week lower, and the gains of the 10-year yield were moderated to under three basis points after holding firm at the 4.50% level. Midweek dollar sales were spurred by speculations, partly fueled by the White House, …
### United States The US dollar is showing weakness against a majority of G10 and emerging market currencies. Despite recent data pointing to increased foreign investment in US securities, Federal Reserve Governor Waller’s call for a rate cut seems to have dampened demand for the dollar. Other developments, including the imposition of a 93.5% tariff on Chinese graphite, are likely to increase costs for the US electric vehicle battery sector. On the stock market front, most equities are performing well, …