Cromwell FX Market View

Dollar Comes Back Strong

All major currencies lost vs the greenback as risk off continued to dominate the week. Tech stocks that started reporting moved the Nasdaq sharply lower with Netflix reporting disappointing numbers. This move lower also moved Cryptocurrencies with it. The week ahead sees Tesla and Apple report.   Euro was weakened by dovish ECB comments even…

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Cromwell FX Market View

Dollar Stalls Despite Fed

With a slightly shortened week the markets started the year risk on as Omicron fears faded however with the Fed giving a more hawkish outlook stock indices suffered a deep pull back. Sterling was the strongest pair vs the USD, CAD made ground as Oil Prices appreciated back towards 80 USD. The hawkish tone was…

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Cromwell FX Market View

Dollar Shines… Eventually

The week saw a slew of central banks reporting surprises. The Fed indicated that next year there will be up to 3 interest rate rises, followed by the Bank of England raising interest rates. Then the ECB reported in less dovish tones than the market expected Eventually it took a late sell off in stocks…

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Cromwell FX Market View

Markets Put Omicron Behind Them. Temporarily?

FX markets were mixed but the general theme of risk on returned as investors temporarily put Omicron fears behind them. Commodity currencies were strongest but moves seemed more corrective. the USD remained range bound vs European majors and Yen. With additional restrictions being introduced in the UK Sterling came under pressure but soon reversed as…

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Cromwell FX Market View

Omicron Dominates Headlines

Investor confidence collapsed as the news of the newly named Omicron Variant. World Heath Organisation warned that the variant has a large number of variants some of which have vaccination escape.   This new filtered through into risk assets which fell significantly on Friday. Crude Oil lost over 13% which affected the Canadian Dollar as…

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Cromwell FX Market View

Lockdown Fears Resurface

The Euro fell last week, firstly weighed by ECB comments who  continued to push back the need for policy action but more importantly lockdowns across the eurozone began to become a more likely reality as Austria returned to full lockdown. Sterling had some respite being one of the strongest performers as continued expectations of a…

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Cromwell FX Market View

Interest Rate Repricing

The week after the main Central Banks announced their interest rates a repricing of expectations took hold. The USD was once again the main winner as markets began pricing in an interest rate rise by June 2022 as inflationary pressures continue to build. US consumer inflation was the market driver as CPI moved to 6.2%…

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Cromwell FX Market View

Central Bank Surprise?

Central banks pushed back against the markets hawkish interest rate expectations last week. RBA started the week and set the tone. While ending the yield curve control, any decision to raise interest rats in 2022 was called a complete overreaction. This pushed AUD to be the worst performer of the week. However the largest surprise…

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