Free Trial

The DXY has moved lower on the back of........>

FOREX
FOREX: The DXY has moved lower on the back of Cohn's resignation as NEC chair &
headlines suggesting that the US is contemplating invoking certain tariffs on
China. Fed Gov. Brainard sounded a little more upbeat, but this did little for
the USD, while Fed's Kaplan reiterated his base case of 3 hikes in 2018.
- The JPY was the major beneficiary as USDJPY ran to 105.50 (were notable option
expiry interest lies), with CHF also benefitting from safe haven flows.
- Tariff sensitive currencies such as the CAD & MXN took a hit on Cohn's
resignation, as he is viewed as a globalist.
- The Aussie has fallen afoul of the risk off mood, The currency shook of the
softer than expected GDP release, after RBA Gov. Lowe had suggested that the Q4
GDP release may be softer than the RBA exp. owing to exports. Lowe offered no
fresh comments on the outlook for MonPol.
- The NZD has outperformed its Antipodean cousin thus far, but NZDUSD ran out of
steam around 0.7300. In the short term the NZ$760mln worth of 0.7300 NZDUSD
option expiries at Wednesday's 10AM NY cut will provide a focal point.
- GBP & EUR posted modest gains vs. USD.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.