外匯評論

外匯評論

Double-check the name and try again. The Dollar index largely maintained altitude through the N. Europe following 外匯評論 EU PMIs, and negative Bund yields, which weighed heavily on EUR-USD.

The DXY peaked at six-session highs of 96. OVERVIEW The Dollar Index touches a seven-day high after the Eurozone stumbles on poor PMIs The stalling economy sent the euro in negative territory, down 0. HIGHLIGHT The euro is under heavy selling pressure this morning after PMI data revealed that economic growth is stalling. The Dollar traded mixed, gaining sharply agains the Euro following underwhelming PMI data out of the Eurozone, while concurrently losing ground to the Pound, which traded firmer after the EU granted a delay in Brexit. The Pound has traded firmer in the wake of the EU granting an extension in the Brexit process. A two-week delay has been stimulated for UK Prime Minister May to get her deal through Parliament or come up with another plan.

If the PM’s deal is passed, then the UK would have until to May 22 to get the necessary withdrawal legislation done before exiting the EU. The Dollar shrugged off Wednesday’s dovish FOMC result in N. Thursday, as the DXY rallied to pre-Fed levels though the session. The resiliency of the dollar was impressive given the FOMC, though this could be a case of the USD being the cleanest dirty shirt in the hamper.

The Dollar managed to recoup some of the losses seen after the Fed reaffirmed its dovish turn yesterday. EUR-USD has corrected back under 1. 1400, putting in some distance from yesterday’s post-Fed six-week high at 1. With the Eurozone economy losing momentum amid acute Brexit uncertainty, and with the 10-year Bund yield declining by over 4 bp during the AM session in Europe today, EUR-USD never looked to be much of bullish trend following opportunity. The Dollar has tumbled after the Fed signalled there would be no further rate hikes this year and that it would halt the steady decline of its balance sheet in September.

10-year T-note retreating to levels below 2. The dollar fell following the FOMC announcement, where rates were left unchanged as expected. The dot-plot signaled no further rate increases this year, and one 25 basis point rise in 2020. The Fed revised 2019 inflation lower, and said it will end its balance sheet reduction in October. Please install latest Adobe Flash Player.