Daily Market Commentary

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August 6th, 2019

China/US trade dispute enters a new phase as Chinese Yuan hit a decade low vs US$ this week, breaching key US$/CNY 7.00 level. Washington responding to the weaker Yuan by labeling Beijing a currency manipulator. Markets have settled somewhat, with some unwinding of safe-haven currencies and a slight...
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August 2nd, 2019

China warns of retaliation after the US’s surprise announcement yesterday to impose fresh tariff’s on China. The announcement saw safe-have Yen & Chf rally to fresh highs vs US$ and CNY weaken to 2 1/2 year lows. Investors will watch today’s Non-Farm Payroll closely for signs o...
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August 1st, 2019

US$ rallied vs all currencies from Fed Chiefs comments “Mid-cycle policy adjustment as opposed to the start of a rate cutting cycle”. Almost un-notice the China/US trade talks wrapped up “constructive talks” and are set to continue in September. Focus will shift to today&#821...
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Wednesday July 31st, 2019

Currency markets were quiet and range bound ahead of the Fed rate decision and the Fed chief’s comments. Slightly sideline, but still important is the US/China trade talks in Shanghai which have potential to impact the markets as well. Any deviation from the widely expected 25 basis point cut ...
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Tuesday July 30th, 2019

Mixed markets overnight, GBP weakened drastically on concerns of a “No-Deal” Brexit. Other currencies were range-bound as investors focused on the anticipated first rate cut by the Fed in a decade. Fed comments will be listened too closely for clues of more possible interest cuts. China/...
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Monday July 29th, 2019

US$ continues stronger, sitting at 2 month highs vs most major currencies. Better than expected GDP Friday and comments of no intervention by US Administration to weaken USD. Expectations of a positive outcome from this weeks US/China trade talks are low. The primary market focus this week is the FE...
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Friday July 26th, 2019

US$ -Today investors will focus on  Gross Domestic Product data  where growth should be at 1.8% in the second quarter from the 3.1% annualized pace set in the prior period. The US$ will likely trade in step with GDP. The better the number the better the dollar will be today.  A weaker GDP numbe...
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Thursday July 25, 2019

US$ was modestly lower against a basket of currencies after three straight days of gains, generally trading in narrow ranges ahead of monetary policy meetings at the ECB today and the Federal Reserve next week. Today we have Durable goods orders which is predicted to increase 0.7% in June after fall...
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Wednesday July 24th, 2019

US$ traded near a five-week high against most major currencies. With a government borrowing agreement on Monday the U.S. Treasury could increase its short-term borrowing. An increase in U.S. borrowing would cut money in the banking system which is seen favourable for the dollar. US existing home sal...
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Tuesday July 23 2019

US$ at a 2 week high versus major currencies as investors have been scaling back expectations of a 50 bps rate cut next week. Yesterday U.S congress reached a deal yesterday on a two year extension of the debt limit, removing fears of a government default later in the year. The US will release the [...
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