Foreign Exchange Solutions

Monday August 31st, 2020

The “risk-on” mood prevails with the US$ index testing multi-month lows, Oil & Equity markets rallying, with the Chinese service sector data surging. Chinese data out this morning boosted markets with the service sector expanding greater-than-expected, while manufacturing PMI grew at...
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Friday August 28th, 2020

US$ comes under selling pressure after the Fed Chair’s speech yesterday, Japanese PM resigns and “risk-on” sentiment returns to the markets. As expected, the Fed Chair introduced the Average Inflation Target (AIT), with the anticipated US$ sell off has been controlled and momentum is expected ...
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Thursday August 27th, 2020

Global markets consolidate ahead of the Fed Chairs speech today, with the US$ holding steady near its one-week lows. Expectations are that the Fed Chair will introduce a new monetary policy framework which will include Average Inflation Targeting (AIT). The impact of the policy would mean that inter...
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Wednesday August 26th, 2020

Markets consolidate ahead of the widely anticipated Federal Reserve Chair Jerome Powell’s speech tomorrow. The Fed Chair is anticipated to have a dovish tone tomorrow, and is expected to layout a critical shift in policy to Average Inflation Targeting (AIT) which allows inflation to surpass 2% and...
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Tuesday August 25th, 2020

Currencies strengthen after the Sino/US trade phone call and vaccine optimism helps improved the “risk-on” mood. The US Trade Representative and Treasury Secretary held a phone call with the Chinese Vice Premier in which they reaffirmed their commitment to the phase one trade deal. The UK Financ...
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Monday August 24th, 2020

The US$ weakens, equity & oil markets strengthen on the FDA’s authorization of a plasma treatment for coronavirus. The FDA announced its “emergency use authorization” of the treatment on Sunday as US virus cases approach 6mio and a death toll at +180k. Investors remain cautious that this c...
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Friday August 21st, 2020

Weak EU PMI data, Sino/US confusion on trade, oil prices slip and US$ Index rallies as the “risk-on” mood stalls. The US$ index rebounded strongly after testing multi-year lows earlier in the week as investors consolidate short positions. Concerns rise over the direction of Sino/US bilateral pha...
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Thursday August 20th, 2020

The US$ index rallies 1%, equity and oil markets weaken after dovish FOMC minutes. The FOMC minutes reiterated its message for an expected tough and prolonged economic recovery, but the minutes were less dovish than some had expected. The US, Chinese, Philippines, Sri Lankan, Turkish and Norwegian c...
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Thursday August 20th, 2020

The US$ index rallies 1%, equity and oil markets weaken after dovish FOMC minutes. The FOMC minutes reiterated its message for an expected tough and prolonged economic recovery, but the minutes were less dovish than some had expected. The US, Chinese, Philippines, Sri Lankan, Turkish and Norwegian c...
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Wednesday August 19th, 2020

The US$ Index is holding steady as markets await the release of the FOMC minutes today. The US$ sitting at +2-year lows as the ongoing effects of the Fed’s stimulus programs continues to add pressure to the US$. Falling treasury yields remain a primary driver for the weakening US$, investors will ...
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