Forex Weekly Outlook – Commodity Currencies Surge on Peak Inflation Theories

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 US dollar pulled back this week after softer-than-expected CPI and PPI inflation data out of the U.S. Commodity linked currencies surged. The South African rand increased 3.8%, the New Zealand dollar rose 3.6% and the Australian dollar rallied 3.0%. The inevitable … Continue reading “Forex Weekly Outlook – Commodity Currencies Surge on Peak Inflation Theories”

Forex Weekly Outlook – US Dollar Surge Reversed in July vs JPY, CHF, CAD, AUD and NZD

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 continued with the dollar index as a measure, but even then, well off its highs. A good reminder that Foreign Exchange pertains to individual currency situations. The DCX index is weighted more toward the Euro and … Continue reading “Forex Weekly Outlook – US Dollar Surge Reversed in July vs JPY, CHF, CAD, AUD and NZD”

Bank of Japan Monetary Policy Unchanged as Expected Raises Inflation Forecast

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield by a 8-1 vote. The BOJ raised its inflation forecast on Thursday but kept guidance on policy bias and says to take more easing steps without hesitation as needed with eye on pandemic’s impact on economy. The bank will remain an outlier among a global wave of central banks tightening monetary policy.  BoJ Chief Kuroda BOJ … Continue reading “Bank of Japan Monetary Policy Unchanged as Expected Raises Inflation Forecast”

Forex Weekly Outlook – US Dollar Strength Fueling Emerging Markets Credit Contagion

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 continues with Euro striking parity for the first time since 2002, and the strongest against the yen since 1998. The Bloomberg Dollar Spot Index hit its highest level on record, eclipsing the peak from the Covid-19 … Continue reading “Forex Weekly Outlook – US Dollar Strength Fueling Emerging Markets Credit Contagion”

Forex Weekly Outlook – US Dollar Strength Continues as Natural Gas Prices Ravage Europe and Japan

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 continues with Euro parity back in striking distance for the first time since 2002, and the strongest against the yen since 1998. The strong dollar becomes more poignant when adjusted for inflation, the trade weighted dollar … Continue reading “Forex Weekly Outlook – US Dollar Strength Continues as Natural Gas Prices Ravage Europe and Japan”

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”

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”

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”