Fears of a US recession amid a trade war with China hit the USD hard. Beijing announced on Friday retaliatory levies of 125% on US imports. The US Dollar Index fell to a three-year low of 99.02, bearish bias intact. The US Dollar Index (DXY) bounced from a fresh three-year low of 99.02 achieved on … Read more
‘Transition problems’ with US Tariffs continue. The US Dollar (USD) is getting trashed. A hugely volatile week for financial markets is ending with another significant fall in the USD, softer US Treasurys and still fragile risk appetite amid China’s tit-for-tat response to the hike in US tariffs, Scotiabank’s Chief FX Strategist Shaun Osborne notes. USD … Read more
Federal Reserve (Fed) Bank of Boston President Susan Collins noted that the Fed has multiple monetary policy tools available and at its disposal should market conditions require them, but the Fed policymaker used the opportunity to push against the idea of the Fed using rate cuts first. Key highlights The Fed would absolutely be prepared … Read more
GBP/USD: Impulsive momentum suggests further GBP strength – UOB Group Impulsive momentum suggests further GBP strength; it remains to be seen if 1.3100 is within reach today. In the longer run, outlook for GBP has shifted to positive; the two technical levels to watch are 1.3210 and 1.3290, UOB Group’s FX analysts Quek Ser Leang … Read more
The Canadian Dollar (CAD) is getting pulled along with the broader sell-off in the USD and is notching up another decent weekly gain—its fourth on the trot and the largest since late 2022. US/Canada spreads have compressed somewhat amid all the volatility in markets but the weak USD tone is the primary driver of the … Read more
USD/JPY adds to Thursday drop, challenges the 142.00 region. The US Dollar loses further ground on tariff fears, recession jitters. US Producer Prices came in below expectations in March. Safe-haven inflows prop up the Japanese yen USD/JPY adds to the pessimism seen in the latter part of the week and recedes to the 142.00 region … Read more