Cromwell FX Market View

Strong Energy and Commodities Dominate

The Yen selloff continued through the week as a broader risk on strategy was adopted which spilled over into USD pressure. With little economic announcements the market was left to it’s own devices and the continued strength in energy and commodity prices pushed the main commodity backed currencies higher.  The USD long term strength remains…

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Cromwell FX Market View

NFP disappoint but USD remains in control

Despite a disappointing NFP on Friday the Dollar remained generally in control during the week. Yen lost across the board as treasury yields continued to rally. New Zealand dollar lost ground despite the RBNZ delivering its anticipated rate hike. Euro lost ground again as inflation pushed up to 3.4% YoY. Eurozone had expected higher inflation…

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Cromwell FX Market View

Greenback Returns to Dominance

The USD gained across the board as stocks continued to falter. This led to a broader stronger greenback. NZD was the worst performer as further lockdowns due to rising COVID infections led to traders pushing back the chance of a rate hike from October to later in the year. The Canadian Dollar continued to gain…

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Cromwell FX Market View

Yen loses as Fed remains Hawkish

The USD was mostly flat against European pairs as continued issues around gas supply and the risk of inflation muted any gains against the greenback. Yen was the largest winner as a hawkish FOMC meeting accelerated treasury yields. The Canadian Dollar was the weeks best performer helped in most by a continuing strong oil price,…

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FX Market View #25

Dollar Gains on Market Uncertainty as Risk Abates

From the beginning of last week, the global markets were depleted of any sustainable risk appetite as the news from the collapse of China’s Evergrande was absorbed. This lifted the Dollar as investors sought safe-haven assets to protect investment portfolios against further downside pressure. As a consequence, the initial Dollar sell-off following the FOMC meeting…

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FX Market View #24

Central Bank Meetings are the order of the week A slew of central bank meetings in the week ahead will keep the markets engaged in monitoring the currency majors. Specific attention on Dollar strengthening as the market looks for potential trending patterns to emerge. All in all, there will be a release of policy data…

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Cromwell FX Market View

USD Ascendancy Continues China’s Worries

USD and JPY were the key winners as risk of sentiment in stock continued throughout the week. China’s Evergrande continued to worry equity markets with a risk off theme playing out throughout the week. Evergrande is China’s second-largest property developer by sales, and has managed to rack up some $300 billion in debts. Doubts are…

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FX Market View #23

Market looking to Trade the ‘Corona’ Delta The Dollar could not hold onto the gains made earlier in the week, as it paired losses against most currency majors as well as emerging market currencies. The catalyst behind the sliding Dollar most likely stemmed from two sources. Firstly, the geo-political environment heated up following the inconclusive…

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FX Market View #22

Dollar heads higher on growing US jobs data The Dollar ascended against the currency majors last week, snapping its decline in the beginning of August. Higher than expected jobs growth data was the stimulus that supported the greenback’s upwards trajectory. As a result, US 10-year yields reversed its five week decline, contributing toward the Dollar…

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FX Market View #21

Only equity markets trade higher as risk appetite falls As the Delta variant of the corona virus subdued several major economies around the globe, the Dollar strengthened last week. In countries such as Japan and Australia as well as parts of the Eurozone, economic activities had fallen due to the implementation of some quarantine restrictions.…

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FX Market View #20

Dollar rally’s on inflation and retail sales data The Dollar rally’s against all major currencies last week apart for the Yen, to break the resistance it faced earlier in the month. A contributing factor towards the slight rally in Yen is put down to the BOJ tweaking its macro forecasts during Friday’s meeting. In effect,…

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FX Market View #19

Dollar resists short term sell-off and trades higher In the past week the Dollar faced resistance to its near-term trend of strengthening against the currency majors. Despite the fact that the jobs report released in the beginning of the month showed robust numbers, the greenback initially declined following a bout of profit-taking. However, the short-selling…

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FX Market View #18

Is this the time to buy into the Dollar dip? Following a hawkish view from the FED, the markets have priced in at least one rate hike before the end of next year. This contributed towards a Dollar recovery in the past 7 days; however the technical picture appears stretched. The Dollar near-term trend starting…

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FX Market View #17

Dollar experiences technical weakening gainst the majors During the past week the Dollar was pushed back as it failed to consolidate weeks of gains against the currency majors. From a technical stance this scenario is not totally unexpected. If you include a more hawkish tone from the FED with economic data revealing an increase in…

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FX Market View #16

Hawkish FED projections send the Dollar higher The US Dollar rallied following statements from the FED that were more hawkish than previously expected. Lifted higher by the a rise in US interest rates, the Dollar rally was coincided with a sell-off in equities and continued throughout the capital markets. Coming into the weekend the markets…

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FX Market View #15

Dollar holds onto current levels despite the drop in US yields The US 10-year yield has continued its pattern of trending lower during the past 3 months, and the fall during last week’s trading session was the largest in the past year. This decline has now made it to a consecutive 4 week period of…

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FX Market View #14

A Healthy US Jobs Market is unable to lift the Dollar The US jobs report in May released numbers of a somewhat healthy half a million new employment contracts, however this disappointed against the much higher expected figure. The let down in May came shortly after the revised April numbers heavily under achieved the 1…

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