How will the US election impact FX market?
If Mr. Donald Trump wins the US election, this result will lead to a short-term rally in the USD dollar.
If Mr. Donald Trump wins the US election, this result will lead to a short-term rally in the USD dollar.
Political factors remain to the fore, and not just in the US. Japan’s weekend election outcome has currency implications as well.
The FX market focuses heavily on monetary policy and interest rate differentials.
Sooner or later, it looks as if Japanese policymakers could intervene in the FX market by using a three-step process.
Last week, we saw the third attempt by US dollar/yen to really break through the 150 level that has proved an insurmountable barrier twice before since October 2022.
What does the inability of US dollar/yen to move too far from 150 tell us about the state of the currency market?
Dollar/yen has risen into the region that prompted the Bank of Japan to intervene in the FX market last autumn. Hence it seems that intervention was only successful for...
We can make the case that positioning in some markets has been overextended.
Volatility has slumped in the G10 FX market. Should we take this as a sign that boring range-trading is set to persist? Or is it a sign that the market is waiting for...
As far as we can see surveys of investors appear to show a clear preference for international equities over those in the US. This can change, of course but, if it does...
Trading has only just resumed for the year but already the FX market seems to have the bit between its teeth to produce another volatile year.
In addressing this question, we want to look at what surprises could happen next year that boost currencies in a way that we might not be anticipating.
Major central banks have accumulated huge amounts of assets via all the bond (and FX) purchases done over the years since the global financial crisis (GFC).
The domestic foreign exchange market remains stable amid global volatility.
A plethora of central bank meetings this week will hog the headlines and possibly dictate short-term, if not longer-term currency movements.
Until not too long ago, all kinds of inflation seemed to be considered as bad. But then came the period of lowflation and, for some, almost permanent deflation. The...
Currency volatility is very low. It seems that the FX market is looking for new catalysts from central banks.
The possible near-term FX market stability will include the outlook for Fed policy and whether tensions in Afghanistan create a wider risk-off sentiment in the...
The dollar has strengthened following the Fed’s slightly more hawkish take on monetary policy last week. But according to Standard Bank, it is not expected to set off a...