•  Resurgent USD demand helped the pair to stage a goodish rebound from 3-week lows.   •  Improving risk-sentiment weighs on JPY’s safe-haven status and remained supportive.   •  Market participants now look forward to the US durable goods orders for fresh impetus. The USD/JPY pair built on previous session’s recovery move from three-week lows and
   •  USD consolidates previous session’s strength and fails to provide a fresh bullish impetus.   •  Recovering oil prices underpin commodity-linked Loonie and add to the modest downtick.   •  Traders now eye today’s US economic docket in order to grab short-term opportunities.  The USD/CAD pair traded with a mild negative bias on Wednesday and eroded
With the Fed expected to reach r* and potentially tighten beyond, analysts at TD Securities believe that financial conditions will tighten and realized vol is likely to increase across assets. Key Quotes “While front-end rates have priced in additional hikes, other markets are only just getting the message that real risk-free rates have risen significantly.”
TALKING POINTS – EURO, ITALY, EUROPEAN COMMISSION, EU European Commission may push back against Italy on budget EDP trigger likely to stoke uncertainty, weighing on the Euro G10 currencies in corrective mode after sweeping risk aversion European politics are back in focus for currency markets, with Italy now in the spotlight. The European Commission will
The pair moves higher and reclaims the 1.1400 area on Wednesday. The greenback eases from tops and returns to the 96.70 region. Brexit talks, Italian politics remain as key drivers for the sentiment. EUR/USD is regaining some buying interest following yesterday’s sharp sell off to the 1.1360 region. EUR/USD looks to Italy, Brexit for direction
Analysts at TD Securities explain that the global rates were marked by significant divergence in 2018, and while US rates rose significantly, other developed market rates barely moved. Key Quotes “Canadian rates were the second-worst performer in part due to BoC hikes and in part due to the resolution of NAFTA uncertainty. Much of the
In light of advanced data for EUR futures markets from CME Group, investors added nearly 15.6K contracts to their open interest positions on Tuesday from Monday’s final 525,858 contracts. In the same line, volume rose by around 65.4K contracts. EUR/USD risks a drop to 1.1300 Yesterday’s bearish ‘outside day’ in EUR/USD combined with rising open
FX option expiries for Nov 21 NY cut at 10:00 Eastern Time, via DTCC, can be found below. – EUR/USD: EUR amounts 1.1300 1.4bn 1.1350 573m 1.1375 669m 1.1400 962m 1.1450 589m 1.1475 783m 1.1480 883m 1.1490 508m 1.1500 777m  – GBP/USD: GBP amounts 1.2840 582m 1.2950 579m – USD/JPY: USD amounts 111.90 420m 112.00 1.8bn 112.20 583m
Additional comments from US President Trump continue to cross the wires. Key quotes (via Reuters) Would like to see lower Fed rates. CIA did not make a determination on the killing of Saudi journalist Khashoggi, not 100 percent. Would meet with Saudi Crown Prince Mohammed bin Salman if the Prince is at the G-20 in Argentina.