Forex Weekly Outlook – US Dollar Strength Unleashing a Dangerous Dynamic on Emerging Market Currencies

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. The rise in the US dollar with the surge in interest rates and the de-risking of the world saw Asian currencies have their worst quarter since 1997. To say central bankers, have issues is an understatement. Already grappling with the quickest inflation … Continue reading “Forex Weekly Outlook – US Dollar Strength Unleashing a Dangerous Dynamic on Emerging Market Currencies”

German Inflation Pace Slows While Spanish Inflation Soars Past 10% in June

Inflation continues to run rampant throughout the world. Energy and food pricing pressures continue to elevate around the world. The effect is showing some variance by location. Germany’s consumer inflation for June slowed more than expected to 7.6% from 7.9% in May which was the highest reading since German reunification. Figures compare with market forecasts of 8%. Spain however saw annual inflation jump to 10.2% in June of 2022 from 8.7% in May, much higher than market forecasts of 9% … Continue reading “German Inflation Pace Slows While Spanish Inflation Soars Past 10% in June”

Forex Weekly Outlook – US Dollar in Consolidative Phase After Wild Instability Draws a Breath

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. The USD has spent the week in a consolidative phase. The dollar index sits just off its weekly high near 105.00 from June 22 with the nearly 20-year peak in the 105.80 zone from June 15. With more stable markets this past … Continue reading “Forex Weekly Outlook – US Dollar in Consolidative Phase After Wild Instability Draws a Breath”

Forex Weekly Outlook – Surging Global Bond yields and Acute Currency Market Instability Boost Dollar

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. When markets quiver funds seek stability and this week again, we saw the sinking euro and yen fuel dollar strength. The US dollar is doing all the heavy lifting, surging against the yen blowing through 20-year highs. The EUR got no respite … Continue reading “Forex Weekly Outlook – Surging Global Bond yields and Acute Currency Market Instability Boost Dollar”

Forex Weekly Outlook – The US Dollar Back Near Twenty Year Highs Against Yen

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. The higher dollar is impacting US exporters who are unhedged. Microsoft warned this week, lowering their expectations for earnings and revenues because of negative impacts from a higher dollar. The US dollar surged against the yen after selling off earlier in the week to be in striking distance of 20-year highs for the USDJPY … Continue reading “Forex Weekly Outlook – The US Dollar Back Near Twenty Year Highs Against Yen”

Eurozone Inflation Accelerates in May to New Records, Follows German and Spanish CPI

Eurozone May CPI numbers came in much higher than expectations released Tuesday confirming the soaring German and Spanish inflation reports released the day prior. Energy and food pricing pressures continue to elevate around the world. Eurozone May preliminary CPI +8.1% was versus +7.7% y/y expected. Core CPI +3.8% was higher also +3.5% y/y expected. Germany’s consumer inflation for May was 8.7% from a year ago and the highest reading since German reunification. Analysts predicted 8.1%. advance. Spain’s May CPI also … Continue reading “Eurozone Inflation Accelerates in May to New Records, Follows German and Spanish CPI”

German and Spanish Inflation Soar to Records with Consumer Sentiment at All Time Lows Ahead of ECB Meeting

Energy and food pricing pressures continue to elevate around the world. Germany’s consumer inflation for May was 8.7% from a year ago and the highest reading since German reunification. Analysts predicted 8.1%. advance. We already know people’s sentiment continues to suffer; GfK Consumer Climate Indicator for Germany edged up to -26 heading into June of 2022 from a record low of -26.6 in May. Spain’s May CPI also soared to +8.7% y/y vs +8.3% expected. The ECB meet in 10 … Continue reading “German and Spanish Inflation Soar to Records with Consumer Sentiment at All Time Lows Ahead of ECB Meeting”

Forex Weekly Outlook – The US Dollar Continues Pullback with Risk-On Flows

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Risk on sentiment continued to improve which saw currencies gain again this week from the dollar. Rising U.S. interest rates and safe haven flows had seen the U.S. dollar soar in 2022, with rates pulling back and risk moods improve investors moved back into currencies. Rates fell as traders priced in the odds of … Continue reading “Forex Weekly Outlook – The US Dollar Continues Pullback with Risk-On Flows”

Germany Consumer Sentiment Near All Time Low with Soaring Prices and War in Ukraine

The German people’s sentiment continues to suffer from soaring energy and food prices, the shadow of war in Ukraine and the morose sentiment thereto. The GfK Consumer Climate Indicator for Germany edged up to -26 heading into June of 2022 from a record low of -26.6 in May which was expected in market forecasts. Germany’s once stoic V-shaped recovery has long been put to bed and moves by the ECB to raise rates will further cloud the mood. Despite the … Continue reading “Germany Consumer Sentiment Near All Time Low with Soaring Prices and War in Ukraine”

Forex Weekly Outlook – Is Euro Headed for Parity with The Dollar

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Risk aversion sentiment again dominated currency again this week. Rising U.S. interest rates and safe haven flows have seen the U.S. dollar soar in 2022. This week however the Greenback pulled back as traders priced in the odds of a U.S. recession becoming more likely. The Swiss franc was the beneficiary among the major … Continue reading “Forex Weekly Outlook – Is Euro Headed for Parity with The Dollar”