Tag: Federal Open Market Committee (FOMC)

Fed Rhetoric to Dictate Dollar Direction

Friday February 23: Five things the markets are talking about Ahead of the U.S open, Euro equities are struggling for direction after a positive Asian session as the market debates the outlook for central banks ‘normalizing’ their policies. Euro bonds have gained along with Treasuries, while the dollar steadies after yesterday’s drop. With no U.S […]

24 hours of reconciliation

24 hours of reconciliation It took all of 24 hours for the results of the rationality test to kick in after traders took time to the read the minutes from Wednesday. Not a heck of a lot has changed in the Feds view. The minutes were far more balanced than the equity market sell-off suggested. […]

Confusion reigns

Confusion reigns In a market starved for significant news, the FOMC minutes provided just enough talking points to keep the dollar bid as US bond yields nudged towards crucial resistance levels.However, the Feds assortment of views on wage growth suggests the FOMC remains pliable during the transition phase from Yellen to Powell. In other words, […]

Yield-o-Mania

Yield-o-Mania Global yields ratcheted higher after a stronger than expected jump on Germany’s PPI which bolsters the hotter than expected comprehensive inflation narrative. But it was the jump in US 2-year note yields that provided the extra boost to the US dollar as shorter-dated tenors provides investors with better goalposts for determining how the market […]

Higher Yields Pushing Dollar Up

Tuesday February 20: Five-things the markets are talking about Overnight, global stock indexes have declined along with U.S futures, while the ‘big’ dollar has rallied a tad as U.S Treasury yields back up towards their four-year highs. No central bank meetings are scheduled for this week although minutes from the latest FOMC (Wed) and the […]

Intermezzo

Intermezzo It was a predictable snoozefest in FX overnight as global holiday sessions crimped activity. And adding to the void, there was scant data during European hours which severely nipped action as traders had few if any fundamental guideposts. But the markets interlude included the usual holiday- liquidity induced mystery move as the dollar went […]

Don’t go barking up the wrong tree in the Year of the Dog

Don’t go barking up the wrong tree in the Year of the Dog A predictable wave of profit taking and risk reduction, as is standard form ahead of US long weekends, dominated Friday session leading to USD gains as US  yields pulled back. And while the broader  US dollar negativity continues to seep through capital […]

Dollar Regains Ground Ahead of Fed Minutes

Higher US inflation fails to spark dollar revival The US dollar depreciated across the board versus major pairs despite consumer prices rising more than expected. Inflation anxiety had triggered a sell-off in global stock markets with the Fed expected to ramp up their interest rate hike path yet the dollar did not benefit as higher […]

US Bond Auction TIPS the dollar

US Bond Auction TIPS the dollar A dismal US 30year TIPS auction is weighing on dollar demand as the sagging bid to cover ratio of 2.31 is signalling dwindling investor appetite as inflationary headwinds build. The dollar is lower because no one wants to own US bonds despite the higher yield, knowing the inflationary headwinds […]

US/German Bond Yield Gap Hits 10-month high

The gap between German and U.S. 10-year borrowing costs reached its widest point since April 2017 on Thursday after a higher-than-expected inflation print in the United States led to a sharp sell-off in U.S. Treasuries. While investors also shed European government bonds on the data – bond markets in the world’s major developed economies tend […]