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Forex News

Event calendar

16

USD/CHF stick to recovery gains beyond 1.0100 handle

The USD/CHF pair staged a goodish recovery on Monday and has now reversed its previous session losses to one-month low.Currently trading around 1.0120 region, 15-pips off session peak level of 1.0136, a broad based US Dollar recovery from three week lows has been the key factor driving ...

15:46 16 January /2017 Forex

CNH: What’s behind the recent big move? – Danske Bank

Research Team at Danske Bank suggests that while transparency is low behind the recent CNH move at the start of the month and presents their take on the move below.Key Quotes‘China has been very concerned about rising outflows and feared an acceleration in January as many – including ourselves – have focused on the resetting on 1 January of the USD50,000 quota tha...

15:23 16 January /2017 Forex

GBP/EUR: Politics primed to dominate 2017 – Lloyds Bank

Gajan Mahadevan, Quantitative Strategist at Lloyds Bank, notes that since the middle of last November, GBP/EUR has been in a range, between 1.14 and 1.20.Key Quotes“The recent European Central Bank decision to extend its quantitative easing programme (albeit reducing its pace of monthly asset purchases, from €80bn to €60bn) and increase the universe of eligible bo...

15:23 16 January /2017 Forex

WTI challenging lows near $52.20 Pablo Piovano

Crude oil prices are slightly in the red at the beginning of the week, with the West Texas Intermediate around the $52.20 area per barrel.WTI weaker on USD buying, Saudi officialsPrices for the WTI are retreating for the second consecutive session so far today, testing lows near the key $52.00 mark following a string rebound in the demand for the ...

15:23 16 January /2017 Forex

USD/CAD retreats from high despite of mildly weaker oil prices

The USD/CAD pair snapped three days of losing streak and staged a tepid recovery on Monday, albeit has retreated few pips from session peak. Currently trading around 1.3135 area, a broad based US Dollar recovery, from Friday's three-week low, helped the pair to defend the very important...

15:00 16 January /2017 Forex

US: Possibility of a fundamental structural change in trade policy - Nomura

Research Team at Nomura suggests that the Donald Trump’s victory in the US Presidential election has introduced the possibility of a fundamental structural change in US trade policy – the first in decades.Key Quotes“The consistency of Mr Trump’s protectionist ideas over the years suggests that this is the most likely policy to be implemented. While it does mark a ...

15:00 16 January /2017 Forex

US: Great uncertainty surrounding Trump’s policies - BBH

Donald J Trump will become the 45th President of the United States on January 20 and there is great uncertainty surrounding the policies his administration will pursue, and its priorities according to the analysts at BBH.  Key Quotes“The only thing we can be confident of is there will be changes in both style and substance. It has already become clear in the confi...

15:00 16 January /2017 Forex

UK’s PM T.May to meet D.Trump in the US – PM’s Spokeswoman Pablo Piovano

PM Theresa May could hold her first meeting with president-elect Donald Trump in the US, according to May’s spokeswoman on Monday.Furthermore, spokeswoman said that May stands ready to act in case the UK is forced to consider alternative economic models, sharing this view with Chancellor Hammond.In addition, the government declined to comment on FX movements, said May’s spokeswoma...

15:00 16 January /2017 Forex

ECB: Practically no chance to introduce new initiatives - BBH Sandeep Kanihama

According to the research team at BBH, after having adjustment policy last month, there seems to be practically no chance that the ECB introduces new initiatives.  Key Quotes“Draghi's presentation may be ho-hum. The eurozone economy has evolved in line with the ECB's expectations.  Investors will be most interested learning Draghi and the ECB's take on the stronge...

15:00 16 January /2017 Forex

China: RMB depreciation trend still intact - Nomura

Research Team at Nomura suggests that the President-elect Trump’s policies could have a significant negative impact on Asia and believes Donald Trump raises the risk of increased US fiscal spending, higher inflation (also partly from protectionism and immigration), and a need for the market to reprice a risk of faster paced US Fed hikes.Key Quotes“Our conviction t...

14:46 16 January /2017 Forex

China: President Xi goes to Davos - BBH

Research Team at BBH notes that this will be the first time a Chinese President attends Davos and it is part of an important and ironic juxtaposition that appears to be unfolding.  Key Quotes“It will be Chinese "core" leader that will defend globalization from the populism and protectionism that appears to be on the rise in the United States and Europe.  The shoe ...

14:46 16 January /2017 Forex

NZD/USD overbought, could still test 0.7180 – UOB

In opinion of FX Strategists at UOB Group, NZD/USD keeps its bullish stance and could attempt a visit to 0.7180 in the short term.Key Quotes“As noted last Friday, only a move below 0.7050 would indicate that a temporary top is in place. NZD touched a low of 0.7072 but rebounded quickly. The recovery appears to have scope to exten...

14:46 16 January /2017 Forex

MXN: Difficult to spot value until the dust settles - Nomura

Analysts at Nomura note that the Mexican peso has taken a beating in the last few months and they still believe that it is not a buy because of significant uncertainties ahead.Key Quotes“Even looking at risk-reward adjusted measures, it is still very difficult to gauge either the expected return or volatility because of significant downside risks. In addition, a s...

14:46 16 January /2017 Forex

UK: May's Brexit strategy in focus – BBH

Research Team at BBH suggests that when May became UK Prime Minister there was a small window of opportunity to change the trajectory and she could have said she was not bound by Cameron's pledge to adhere to the results of the referendum.  Key Quotes‘May's government has not been bound by other policies of the previous Tory government. She could have said that th...

14:46 16 January /2017 Forex

Brazil: Reigniting growth is key in 2017 - Nomura

Analysts at Nomura note that 2016’s improvements in economic policy and better political coordination provided Brazil with a significant market opportunity.Key Quotes“As most of that improvement has been already realised, 2017 is likely to be more challenging as there should be less positive surprises/further improvement on the agenda. While most of those economic...

14:46 16 January /2017 Forex

USD/JPY rebounds from 6-week lows, retakes 114.00 Pablo Piovano

The Japanese yen keeps the bid tone intact today amidst prevailing risk aversion, with USD/JPY regaining 114.00 and beyond.USD/JPY rebounds from 113.60After testing fresh multi-week lows in the 113.60 area in early trade, spot has managed to regain some traction and advance once again above the key barrier at 114.00 the figure.Br...

14:46 16 January /2017 Forex

MXN: Anatomy of a downfall – Deutsche Bank

In view of the research team at Deutsche Bank, the current devaluation of the MXN is almost unprecedented in both nominal and real terms.Key Quotes“While there is scope for a cyclical recovery of the MXN, we identify structural elements in Mexico’s economy that are likely to limit the extent to which the USD/MXN can rebound. Trade-related market drivers of the MXN...

14:23 16 January /2017 Forex

EM FX: Winners and losers – Nomura

In view of the analysts at Nomura, President-elect Trump’s economic policies, along with numerous other global concerns will remain significant drivers of EM FX over the next few months.Key Quotes“We believe some of the biggest losers will be MXN and CNH. We highlight this year’s likely winners and losers and make the following recommendations.”“Long USD/C...

14:23 16 January /2017 Forex

QE: How much will the ECB have to buy below depo in Germany in 2017? – Danske Bank Sandeep Kanihama

Research Team at Danske Bank notes that as of 2 January, it has been possible for the ECB to undertake QE purchases below the level of the deposit rate ‘to the extent needed’.Key Quotes“In this note, we estimate how much buying below depo will be required in German government bonds in order not to breach the 33% issue limit under different rate scenarios for 2017....

14:23 16 January /2017 Forex

CAD is vulnerable to an equity correction – Deutsche Bank

In view of the Sebastien Galy, Macro strategist at Deutsche Bank, while we can track spot flow, it is only possible to infer the equity flows into Canada from their hedging pressure on the cross currency basis.Key Quotes“Nonetheless, we do know that the post election period was one of risk taking and that over the past few quarters inflows into Canadian equities have...

14:00 16 January /2017 Forex