Tag: yen

The U.S. dollar rally continues into another week with the repricing of Fed hikes higher for longer. Two-year Treasury yields surged 30 bps this week to 4.56% (high since March 10th), trading 4.63 at one point. Benchmark MBS yields ripped 32 bps this week to a six-month high 5.79%. Futures are pricing in a 69% probability of a 25-bps hike on June 14th after strong PCE and durable goods data Friday. It has been seen hardest on USD/JPY, accelerating with … Continue reading “Forex Traders Weekly Outlook – Repricing of Fed Hikes Higher for Longer Pumps U.S. Dollar”

The U.S. dollar closed mixed this week with more Debt Ceiling shenanigans, the USD strongest against the BRIC currencies and the yen +1.51% and weakest against the Kiwi – 1.37%. Gold meanwhile fell another 1.67% this week. Overall, the dollar index (DXY) rose by 0.47%. Over the past few weeks, the Greenback has rebounded after being down about 8.5% from a peak last September, as measured by the US Dollar index or the WSJ Dollar Index. The Chinese Yuan has … Continue reading “Forex Traders Weekly Outlook – U.S. Dollar Strengthens against BRICs and Yen, Commodity Currencies Rise”

The U.S. dollar roared to life this week after being down about 8.5% from a peak last September, as measured by the US Dollar index or the WSJ Dollar Index. Yields were higher after higher inflation expectations from the University of Michigan Consumer survey an debt ceiling angst led to a flight to safety flow into the dollar. The shift saw a number of currencies break down; the commodity currencies the weakest. The South African Rand and the Australian, Candian … Continue reading “Forex Traders Weekly Outlook – U.S. Dollar Attracts Safe Haven Flows, Commodity Currencies Sell Off”

The U.S. dollar has fallen about 8.5% from a peak last September, as measured by the US Dollar index or the WSJ Dollar Index. The dollar’s consolidation through Q1 has given way to renewed losses as investors focus more intently on reduced support for the USD from yield and growth differentials. European growth momentum is building as the impact of the Ukraine war eases. It has been its worst start for the dollar to the year since 2018 with the … Continue reading “Forex Traders Weekly Outlook – Banking System, Fed Terminal Rate & Debt Default Weigh on Dollar”

Last week was about the yen which fell across the board after the Bank of Japan said it would maintain ultra-low interest rates as expected, and unanimously decided to make no changes to its yield curve control (YCC) policy. The Japanese currency plunged to its lowest since September 2008 against the euro, and its weakest level in seven weeks versus the dollar THE EURJPY rose 1.5% against the yen at 150 Friday. On the week, EURUSD rose 1.8%. The US … Continue reading “Forex Traders Weekly Outlook – Yen Smacked Down, Active Week Ahead for Central Banks”

Major currencies saw constricted ranges like other financial markets this week, the GBPUSD range of 121 pips was the lowest range since the week of November 14, 2021, when the range was 117 pips. The dollar is oscillating on pricing of the end of the Fed’s tightening cycle. Money markets price in a quarter-point U.S. rate hike next month, followed by a pause in June. The rate futures market has also priced in rate cuts this year as the economy … Continue reading “Forex Traders Weekly Outlook – Focus on Yen and Ultra Loose Monetary Policy”

The week ended with the U.S. Dollar as the strongest of the major currencies with support from yields with the two-year yield back above 4% at 4.103%, up 13.1 basis points for the week and the 10-year yield 3.517% up 6.8 basis points. The prices of gold and silver fell sharply today reacting to higher yields and stronger dollar with spot gold fell $36.84 to $2003.43, for the week, gold prices fell $-3.62 or -0.18%. The NZD was the weakest … Continue reading “Forex Traders Weekly Outlook – US Dollar Gets Support From Rising Yields and Risk Off”

The week saw the U.S. Dollar again pull back with treasury yields, the 10-yr note yield traded at lows for the year. The U.S. Dollar Index fell 0.4% to 102.09 with the safe haven Swiss franc the strongest, rising 1.1%. The British pound and the Euro continued their rally as did the Japanese yen. The weakest currencies were the South African rand, South Korean won, Swedish krona and the Mexican peso. The Hong Kong Monetary Authority intervened to prop up … Continue reading “Forex Traders Weekly Outlook – Swiss Franc Safe Haven Flows, Hong Kong Dollar Breaks Band”

The week saw the U.S. Dollar pull back with treasury yields. The 2-yr Treasury note yield rose 29 basis points this week to 4.06% and the 10-yr note yield rose 11 basis points to 3.49%. The U.S. Index fell 0.6% to 102.52. EUR/USD rose for a fifth consecutive week. GBP/USD traded to an 8-month high with UK annual inflation above 10%. That said we did see some impulse reversal action, a bullish engulfing month formed on USD/CHF, the EUR/USD after … Continue reading “Forex Traders Weekly Outlook – Euro and Pound Rise Continued”