Dollar Mixed as Risk-Off Sentiment Takes a Breather

  • The dollar rally continues; during the North American session, we will get some more clues to the state of the economy
  • FOMC minutes will be released; Canada reports January CPI
  • Brazil central bank confirmed it stands ready to defend the real
  • UK January CPI surprised on the upside, mostly due to temporary factors; Turkey cut rates 50 bp to 10.75%, as expected
  • Japan data was mixed overnight; Singapore’s budget will provide a huge slug of stimulus; South Korea signaled it is working on a similar stimulus package

Continue reading “Dollar Mixed as Risk-Off Sentiment Takes a Breather”

Dollar Firm as Risk-Off Sentiment Intensifies

  • Apple’s warning about the risk to its Q1 revenue guidance due to the coronavirus was a reality check for the markets; the dollar rally continues
  • We get the first February reads of the US manufacturing sector this week; the US economy remains firm
  • UK-EU tensions remain high; there is growing uncertainty about the size and timing of the next UK budget
  • The UK’s latest jobs report was mixed; German ZEW survey came in well below expectations
  • The rand continues to underperform (-0.5% today) after Moody’s cut South Africa’s growth forecast Continue reading “Dollar Firm as Risk-Off Sentiment Intensifies”

Drivers for the Week Ahead

  • We get the first February data from the US manufacturing sector this week; the US economy remains strong; FOMC minutes will be released Wednesday
  • Canada reports some key data this week
  • Preliminary eurozone February PMI readings will be reported Friday; UK has a busy data week
  • Japan has a busy data week; Australia reports January jobs data Thursday Continue reading “Drivers for the Week Ahead”

EM Preview for the Week Ahead

Concerns about the coronavirus are likely to keep EM under pressure, as the ultimate impact is still unknown.  Global growth was already at risk before the virus hit and now the outlook is even cloudier. Continue reading “EM Preview for the Week Ahead”

Dollar Firm Ahead of US Retail Sales and IP Data

  • The dollar rally continues; the US data highlight today will be January retail sales and IP
  • The Fed announced that it will cut back on its repo operations again starting today
  • Senate confirmation for Fed nominee Judy Shelton will be a close call
  • Banco de Mexico cut rates by 25 bp to 7.0% yesterday; Brazil central bank intervened in the FX markets
  • Sterling is holding up after yesterday’s gains following the cabinet reshuffle; Eurozone Q4 GDP grew 0.9% y/y
  • Japan’s parliament confirmed Seiji Adachi to replace outgoing BOJ board member Yutaka Harada Continue reading “Dollar Firm Ahead of US Retail Sales and IP Data”

Dollar Takes a Breather as Risk Appetite Recovers

  • The dollar rally is taking a breather; Fed Chair Powell’s first day of testimony was a largely subdued affair
  • Bernie Sanders won the New Hampshire Democratic primary with 26% of the vote
  • Eurozone industrial production fell sharply to -4.1% y/y; Riksbank kept rates steady at 0.0%, as expected
  • Geopolitical tensions in Syria are rising
  • New Zealand kept rates steady at 1.0%, as expected; India reports January CPI and December IP Continue reading “Dollar Takes a Breather as Risk Appetite Recovers”

Riksbank Preview

Sweden is one of the few countries that have tightened monetary policy post-crisis. However, that tightening cycle appears to have ended and the Riksbank is likely to keep rates steady when it meets this Wednesday. Continue reading “Riksbank Preview”