MNI: GERMANY NOV RETAIL SALES -0.6% M/M (FCST: 0.5%)

MNI BRIEF: Q3 Output Gap Hits 18th Negative Result - BOJ

MNI: PBOC Net Injects CNY1.1 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1887 Weds; -2.33% Y/Y

MNI BRIEF: Fed's Bostic Says Bumpy Inflation Calls For Caution

MNI China Daily Summary: Tuesday, January 7

MNI: FRANCE DEC CONSUMER SENTIMENT 89

MNI: GERMANY NOV FACTORY ORDERS -5.4% M/M

MNI: SWEDEN FLASH DEC CPIF +1.5% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: US Dollar Remains on Back Foot, NZD Outperforming

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Despite yesterday’s rejection of the WaPo Tariff article by President-Elect Trump, the greenback is under pressure once again Tuesday, with markets taking a more cautious view of the underlying bullish dollar trend.
  • While some analysts believe there may be some truth behind the details of the tariff article, others believe the resignation of Fed's Michael Barr may also be contributing to the softer greenback, assisted by the initial rally for the US KBW regional banks index in anticipation of less stringent regulations on banks' balance sheets.
  • This risk on sentiment has been present in currency markets early Tuesday, with the likes of NZD and AUD outperforming. NZDUSD has now extended the bounce from multi year lows to around 1.75%, and hovers just below the 0.5700 handle. In similar vein EURUSD is back above 1.04, with German inflation data on Monday continuing to underpin a more hawkish short-term reaction for the single currency.
  • USDJPY traded multi month highs of 158.42 overnight, however the pair now trades around 80 pips off this level as intervention rhetoric returns. Comments from the Japanese Finance Minister around excessive FX moves and being prepared to act have halted the yen’s decline, although the remarks don't appear to represent an escalation on what has been said recently by officials.
  • The Swiss franc is a touch softer on the session following a lower-than-expected core inflation print, with EURCHF trading around 0.9430, close to 2-month highs for the cross.
  • US November trade, JOLTS job openings, December services ISM highlight the economic calendar. FOMC Member Barkin is due to speak at the Raleigh Chamber of Commerce.
261 words

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.
  • Despite yesterday’s rejection of the WaPo Tariff article by President-Elect Trump, the greenback is under pressure once again Tuesday, with markets taking a more cautious view of the underlying bullish dollar trend.
  • While some analysts believe there may be some truth behind the details of the tariff article, others believe the resignation of Fed's Michael Barr may also be contributing to the softer greenback, assisted by the initial rally for the US KBW regional banks index in anticipation of less stringent regulations on banks' balance sheets.
  • This risk on sentiment has been present in currency markets early Tuesday, with the likes of NZD and AUD outperforming. NZDUSD has now extended the bounce from multi year lows to around 1.75%, and hovers just below the 0.5700 handle. In similar vein EURUSD is back above 1.04, with German inflation data on Monday continuing to underpin a more hawkish short-term reaction for the single currency.
  • USDJPY traded multi month highs of 158.42 overnight, however the pair now trades around 80 pips off this level as intervention rhetoric returns. Comments from the Japanese Finance Minister around excessive FX moves and being prepared to act have halted the yen’s decline, although the remarks don't appear to represent an escalation on what has been said recently by officials.
  • The Swiss franc is a touch softer on the session following a lower-than-expected core inflation print, with EURCHF trading around 0.9430, close to 2-month highs for the cross.
  • US November trade, JOLTS job openings, December services ISM highlight the economic calendar. FOMC Member Barkin is due to speak at the Raleigh Chamber of Commerce.