Payrolls and competency to drive markets after muted UK election

Payrolls and competency to drive markets after muted UK election

USD The dollar extended its losses yesterday as local markets were closed for Independence Day. This morning, with Treasury markets reopening and yields drifting moderately lower, the dollar is once again trading under moderate pressure. Whether that persists or not...
Softer ISMs drag the dollar lower

Softer ISMs drag the dollar lower

USD While today should be a quiet day for dollar with the US celebrating Independence Day, yesterday saw some notable moves in the greenback, fuelled by a weak set of ISM services PMIs and speculation around Joe Biden’s future in the US Presidential race. Turning to...
Powell’s confidence is increasing

Powell’s confidence is increasing

USD Speaking alongside ECB President Christine Lagarde and BCB President Roberto Campos Neto at the ECB’s central bank forum in Sintra yesterday, Fed Chair Jerome Powell struck a more optimistic tone on the Fed’s battle with inflation. This weighed moderately on...
Dollar remains in favour for a multitude of reasons

Dollar remains in favour for a multitude of reasons

USD Politics remained the focus for markets yesterday. While the unwind in election risk premia proved durable in DM markets following the first round of the French election, in emerging markets the relief rally was quickly unwound as traders turned their attention to...
Political risk eases at the margin

Political risk eases at the margin

USD The weekend brought about some clarity in the political sphere, which has seen the broad dollar unwind around a third of a percent in early trading. Not only did the first round of the French elections detail a lower probability of an outright majority for Marine...
Trump takes the ascendency

Trump takes the ascendency

USD Volatility was once again syphoned through emerging markets yesterday, where investors positioned for a potential Trump victory in the first presidential debate through short MXN positions, while the South African rand sold off 1.5% as the ANC-led coalition still...