The record dollar run

27 February, 2015

We highlighted yesterday the fall in volatility that had been seen over the past week, but also mentioned that month end brings with it risk of more erratic trading. Some of that was evident yesterday in the wake of the latest price data from the US, which showed headline inflation falling into negative territory. Still, the dollar managed a decent recovery, especially against sterling and the euro, largely on the firmer than expected increase in core prices. Sterling itself failed to push above the 1.55 level on a sustained basis, with the details of Q4 GDP data still showing a fairly unbalanced economy, supported by a net trade improvement which will could well struggle to be sustained as EURGBP moves ever lower.

Yesterday’s move means that the dollar index (DXY) is now in positive territory for the month and could mean that we see the dollar gain for an eighth consecutive month on this measure. The data today is going to be secondary to month end flows, with just Q4 PCE data in the US, together with Pending Home Sales, Chicago PMIs and Michigan sentiment.


Source link  
Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...

Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...


Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...


Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...

Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

  


Share it on:   or