Forex and the Economy

EUR/USD – Euro drifting on lack of key indicators

EUR/USD is showing little movement in the Friday session. Currently, the pair is trading at 1.1404, up 0.14% on the day. In economic news, the eurozone current account surplus narrowed to EUR 20.3 billion, down from EUR 23.0 billion. This was well off the estimate of EUR 24.1 billion. In the U.S., ...

Mnuchin heads to the White House

  Support or a dressing down? In the aftermath of the conflicting press reports about a possible shift in the US stance on tariffs, risk appetite was still buoyant during the Asian session, though not aggressively so. As a follow-on from yesterday’s headlines, is was announced that Treasury Secr ...

Daily Markets Broadcast 2019-01-18

Daily Markets Broadcast 2019-01-18 Wall Street firmer on hopes for trade stance shift Press reports suggested US Treasury Secretary Mnuchin supported lifting some or all of the China sanctions helped US indices higher yesterday. The report was subsequently denied by the Treasury, but the wheels ha ...

Commodity currencies surge as Mnuchin pitches idea of rolling back China tariffs

In hopes of improving trade talks with China, Treasury Secretary Steven Mnuchin reportedly proposed the idea of lifting some or all the tariffs. The Wall Street Journal noted that the President has made clear he wants a deal – and is pressing Mr. Lighthizer to deliver one. US Trade Representative ...

Credit enhancement: a boost to private capital in infrastructure?

A strange irony persists in today’s infrastructure investment market: private capital waiting to be deployed into the sector is at an all-time high, yet investors seem reluctant to commit. Even in developed countries, few investors are willing to partake in transactions with merchant or construc ...

Stocks pop on strong Philly Fed and jobless claims data; Netflix reports after the close

Earning season is picking up and stocks were initially lower after poor results from Morgan Stanley, but those losses were erased after strong US economic data. Early in New York, S&P 500 futures were pointing to a lower open after Morgan Stanley fourth quarter results disappointed, coming nowhere ...

GBP/USD – Brexit drama fails to dent plucky pound

GBP/USD has posted slight gains in the Thursday session. In North American trade, the pair is trading at 1.2900, up 0.16% on the day. On the release front, the BoE released its Credit Conditions survey for the fourth quarter. In the U.S., unemployment claims dropped to 213 thousand, below the forec ...

Panoramic Weekly: The ayes to the left, the noes to the right: the pound has it

Although world markets depend more on Fedspeak and China than on British politics, when the UK House speaker announced (in traditional centuries-old fashion) that the “noes” opposing the government’s Brexit plan had won – inadvertently, he helped reduce sugar levels in Europe. Investors’ ...

Building Defenses Against the Next Economic Downturn

By David Lipton عربي, Français,  日本語, Русский The global economy faces a number of complex challenges from technological change and globalization, and the lingering effects of the 2008-9 financial crisis. At the same time, we are witnessing lower levels of trust in the core ...

USD/CAD – Canadian dollar dips, Canadian ADP nonfarm payrolls slides

USD/CAD has posted gains in the Thursday session. Currently, the pair is trading at 1.3309, up 0.40% on the day. On the release front, Canadian ADP nonfarm payrolls fell by 13.0 thousand in December, after a strong gain of 39.1 thousand a month earlier. In the U.S., unemployment claims dropped to 2 ...