Category: Daily blog

US short-dated yields head south

The dollar failed to sustain early gains yesterday as some firming of Fed rate cut expectations and a decline in US bond yields weighed on the currency. Hence the euro and sterling are back trading at around $1.1640 and $1.35 respectively this morning, well off yesterday’s lows of circa $1.1575 and $1.3415. EURGBP is little […]

EURUSD back at around $1.16

While Donald Trump’s firing of Fed Governor Cook – which will be contested in the courts – has drawn much commentary, the fallout in financial markets has been very limited so far. In FX, the dollar weakened a little initially but has recovered since, and is currently not much changed from yesterday morning’s levels against […]

Euro gives up Powell-related gains

A potential political crisis in France (yet another one) weighed on the euro yesterday, as the Prime Minister of the minority government said he would call a confidence motion relating to budget proposals to reduce the country’s large public deficit. The single currency has given up most of Friday’s post-Powell gains against the dollar, falling […]

Powell opens door to Sept rate cut

Fed Chair Jerome Powell opened the door to a cut in interest rates at next month’s monetary policy meeting in his Jackson Hole speech on Friday, prompting a decline in US bond yields, a rally in US stocks to fresh record highs, and a fall in the dollar. The latter is trading at around $1.1715 […]

All eyes on Powell

The euro and sterling have both lost more ground to the dollar ahead of Fed Chair Powell’s speech at Jackson Hole later today, despite stronger than expected Euro area and UK economic data and more of a mixed bag of US data. They have dipped to just under $1.16 and $1.34 respectively, leaving EURGBP again […]

Markets treading water ahead of Powell

The main currency pairs remain in relatively tight ranges as they continue to tread water ahead of Fed Chair Powell’s eagerly awaited Jackson Hole speech tomorrow. The euro is trading at around $1.1650 against the dollar this morning, in the lower half of this week’s range of $1.1620 to $1.1720, while sterling has given up […]

Sterling firmer after UK inflation data

Sterling has gained some ground this morning after the release of stronger than expected UK inflation data a short while ago. The pound has jumped by around half a cent to $1.35 against the dollar, albeit this still leaves it a touch below yesterday morning’s levels, and is a little firmer against the euro at […]

Main currency pairs little changed

It was a very quiet start to the week in financial markets, not helped by a light economic data calendar, In FX, the dollar drifted higher from Friday’s closing levels chalking up modest gains. The euro and sterling are trading at around $1.1675 and $1.3520 respectively this morning, versus $1.17 and $1.3550 at the end […]

Dollar softer amid mixed US data

While Friday’s US economic data were something of a mixed bag, the dollar ended a little lower on the day. Over the week it shed around half a cent and one cent against the euro and sterling respectively, and is trading at about $1.17 and $1.3550 this morning. EURGBP is a touch firmer than Friday […]

Dollar a touch firmer

The dollar popped higher yesterday after stronger than expected US producer price inflation data, though its gains were modest and are proving relatively short-lived for now. There’s plenty more US economic data due today though, including July retail sales, which will have a bearing on the near-term direction for the currency. It is currently trading […]