FX

Dallas Fed President Robert Kaplan reiterated on Thursday that he would rather see the Fed take its foot a little off the gas pedal sooner rather than later, as reported by Reuters. Additional takeaways “The spending tailwind for the US rconomy looks strong.” “Right now, balance of power is to the worker, who can wait for a better

Reuters came out with the news during early Thursday, quoting the British High Commissioner to Australia Vicki Treadell, “Britain and Australia held another round of talks to progress a free trade deal.” Additional comments… We are working hard to have an agreement in principle at the bilateral between Prime Ministers Johnson and Morrison on June

AMC shares smashed record high  and hit $61.90, trading halted Traders are out to squeeze the shorts as Mudrick bails out. AMC surpassing GameStop frenzy from January in a new epic. Update June 2: Shares of AMC  soared to $61.72, up over 92% on the day. Mid-US session, trading has been halted. The movie theatre chain

One-month risk reversal on USD/CAD, a measure of the spread between call and put prices, turns red for the first time in over a week, not to forget marking the heaviest bearish bias since May 20, according to data source Reuters.  A call option gives the holder the right but not obligation to buy the underlying

The Canadian economy rose at a 5.6% rate during the first quarter according to data released on Tuesday, slightly below expectations. According to National Bank of Canada analysts, the report does not change their view for strong growth in the second half of 2021. Key Quotes: “While real GDP growth in Q1 was below consensus

Analysts at HSBC raised their forecasts on the Chinese yuan, as they see the currency strengthening more than expected recently. Key quotes “Q2 6.25 vs. prior forecast at 6.5, Q3 6.45 vs. 6.5 previous. “ “By end-2021, USD/CNY will revert to 6.6.“ “Net FX inflows to China have moderated slightly YTD.” “Expect this narrowing trend

Lee Sue Ann, Economist at UOB Group, sees the RBA leaving the policy rate unchanged at its meeting on June 1st. Key Quotes “We continue to expect the cash rate to remain unchanged until 2024 and expect a full AUD100bn extension of quantitative easing (QE) beyond the second round”. “That said, we think that Yield

What you need to know on Monday, May 31: Market players are still willing to sell the greenback on upward moves, suggesting the American currency will remain on the backfoot these days. The greenback keeps moving alongside US government bond yields, which reflect US inflation expectations. Upbeat US data provided temporal support to the USD,

Previewing next week key data releases from the US, “payrolls probably rose strongly by pre-covid standards but we see some downside risk versus the consensus again this month,” said TD Securities anaysts.  Key quotes “Our forecast implies a still-sizeable 7.7mn net decline from the pre-COVID level. The unemployment rate probably resumed its downtrend after a surprising

GBP/USD trims losses as the US dollar pulls back, remains in the range The GBP/USD bottomed before the release of US data at 1.4135 amid a rally of the US dollar across the board. Afterward, the greenback lost strength favoring a rebound in cable back above 1.4150. The intraday bias still points to the downside

Here is what you need to know on Friday, May 28: It was AMC day on US stock markets on Thursday as the cinema operator totally took control of the volume profile, outdoing every mega-cap and growth stock in the process. AMC rose over 35% as retail and perhaps some other operators stoked the fizzle

XAU/USD continues to edge lower after failing to close above $1,900. Rising US Treasury bond yields weigh on gold in the second half of the week. US PCE inflation preview: Gold remains key asset to watch. The XAU/USD pair reached its highest level since early January at $1,912 on Wednesday but ended up closing the

Asian shares struggle to keep recent gains around two-week top. Sino-American trade chatters are back in fashion, RBNZ’s Orr weighs on NZX 50. Aussie Capex, China Industrial Production came in softer for April. US Treasury yields remain firm, test the market bulls ahead of the key data. Asian equities remain sidelined around the fortnight top

On Wednesday, the Reserve Bank of New Zealand, kept its monetary policy unchanged as expected, surprising with a hawkish tone that boosted the NZD across the board.  According to analysts at Wells Fargo, the RBNZ’s announcement represents upside risk to their NZD/USD exchange rate forecast. Key Quotes:  “The RBNZ held its Official Cash Rate steady

USD/INR stands on slippery ground near multi-day low, drops for fifth consecutive day. Risk-on mood weighs on the US dollar, downbeat options market also weigh on the quote. SBI report anticipates slower fall in Indian GDP, covid infections in India ease of late. Market sentiment favor bears, risk catalysts are the key to follow. USD/INR

EUR/USD turned south after rising to 1.2266 on Tuesday. US Dollar Index stages a modest recovery during American trading hours. Fed’s Clarida says Fed could discuss scaling purchases in upcoming meetings. The EUR/USD pair climbed to its highest level since early January at 1.2266 on Tuesday but lost its bullish momentum in the second half

The Consumer Price Index (CPI) number in April, which arrived at 4.2% on a yearly basis, was a “very unpleasant surprise,” Federal Reserve’s Vice Chairman Richard Clarida told Yahoo Finance on Tuesday, per Reuters. Additional takeaways “US outlook is very very positive and growth could hit 7%.” “Most recent employment report highlighted near term uncertainty in labor market.”

Bank of England (BoE) Governor Andrew Bailey acknowledged on Monday that the economic recovery in the UK is “quite unbalanced,” as reported by Reuters. “Hopefully, that imbalance will reduce as more services markets reopen from lockdown,” Bailey added. “The risk of high inflation expectations becoming entrenched is not our central view.” Market reaction These comments