Category: Liquidity

September 9, 2022

BIG MISS ON CANADIAN EMPLOYMENT HAS MARKETS FAVORING USD After the Bank of Canada (BoC) hiked interest rates by 75bps on Wednesday, CAD bulls built up a head of steam prior to today’s labor release. Markets overexuberance in the dollar […]

September 7, 2022

The Japanese Yen is friendless at the moment and is sinking against a wide range of currencies as the central bank step continues to buy government bonds in size to keep interest rates lower for longer. The Japanese Yen is […]

August 30, 2022

The Bank of Japan’s ultra-loose monetary policy is under pressure from a swathe of global central banks embarking on a series of rate hikes and balance sheet reduction programs. While many central banks, including the Federal Reserve (Fed) and the […]

August 18, 2022

USD/JPY, like most dollar crosses, has witnessed a recovery as markets digest the short-lived notion of a Fed pivot following slightly cooler US CPI data last Wednesday.The softer dollar provided an opportunity for USD/JPY bulls to re-enter the trend at […]

August 15, 2022

GERMAN GAS LEVY TO FUND ALTERNATIVE SUPPLY TO BEGIN IN OCTOBER Trading Hub Europe is expected to announce the 2-3 cents per kilowatt hour (kWh) levy later today in an effort to fund alternative gas supply in the wake of […]

August 5, 2022

Cryptocurrencies have been in news over the last few years. People have considered cryptocurrencies as a profitable investment option. Out of all cryptocurrencies, the most talked about is Bitcoin. The first half of 2022 has been bad for cryptocurrencies. Bitcoin […]

August 4, 2022

This week has seen a group of Federal Reserve members spreading the central bank’s message that US inflation is elevated and that interest rates will need to be ramped up further to try and dampen domestic price pressures. Various board […]

August 3, 2022

The Bank of England is expected to hike interest rates for the sixth consecutive meeting on Thursday as the central bank continues to grapple with soaring inflation. The UK central bank is seen hiking the Bank Rate by 50 basis […]

July 20, 2022

The US Dollar has pulled back after last week’s jump to fresh 19-year-highs. As I had written last Thursday, this was taking on more of a EUR/USD-driven theme. After the major pair ran into parity last week, buyers were unable […]

June 27, 2022

Durable goods orders are used as a barometer for the U.S. economy by measuring industrial activity. This economic indicator represents new order data from U.S. manufacturers for higher value goods that are said to last over three years. Increasing durable […]

June 23, 2022

U.S. economic activity continued to decelerate at the tail end of the second quarter, weighed down by sky-high price pressures and weakening demand conditions. According to S&P Global, its Flash Composite Purchasing Managers’ Index, which combines manufacturing and services production […]

June 2, 2022

GBP/USD called back some of yesterday’s downside in the Asian and European sessions after the dollar took its foot off the pedal as U.S. Treasury yields eased. Currently, the UK economy is under pressure from rampant inflation and slowing manufacturing […]

May 23, 2022

U.S. Bank National Association today announced the redemption on June 2, 2022, of all its outstanding Floating Rate Senior Notes due June 2, 2023 (CUSIP No. 90331HPM9). The redemption price for the Senior Notes will be equal to $1,000 per […]

May 17, 2022

In this edition of Central Bank Watch, we’ll cover the two major central banks in Europe: the Bank of England and the European Central Bank. There’s been somewhat of a divergence between the BOE and ECB in recent weeks, where […]

April 25, 2022

The anti-risk Japanese Yen put in a dismal performance during the first quarter of 2022, particularly as March wrapped up. A majors-based Japanese Yen Index that averages JPY against USD, AUD, GBP and EUR fell as the S&P 500 and […]

April 14, 2022

On Tuesday and Wednesday we saw US and UK headline measures of inflation (inclusive of fuel and food which tend to exhibit the most volatile price changes) which both beat expectations. Upward surprises in inflation data seems to be the […]

April 8, 2022

The US dollar continues to appreciate across the board with the greenback’s strength sending many US dollar pairs to near multi-month and multi-year highs. USD/JPY is within a point of levels last seen in August 2015, GBP/USD continues to test […]

March 22, 2022

The Yen has continued its impressive decline against a number of G7 currencies which may be set to continue. The Yen was naturally on the back foot due to a massively supportive Bank of Japan (BoJ) continuing to provide stimulus […]

February 28, 2022

The Bank of Russian more than doubled its bank rate earlier today to 20%, from 9.5%, as the central bank stepped in to try and prevent a currency crisis after the US and the West imposed stringent sanctions on the […]

February 2, 2022

The Bank of England is expected to deliver a 25bps hike at its upcoming meeting with a 9-0 vote split. A reminder that last month, Tenreyro had been the sole dissenter, voting to keep the Bank rate unchanged given the […]