Dean's FX

Dean's FX 16th May.

Fri, 16 May 2008 07:30:02 -0400

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Graph provided by OANDA FXLabs. Click for the full version of FXHeatmap and FXNewsEffects.

The USD$ is weaker in the O/N trading session. Currently it is lower against 11 of the 16 most actively traded currencies in a ‘subdued’ trading range. Yesterday, manufacturing activity contracted more than expected in the NY Fed region. The Empire State manufacturing index fell to -3.2 vs. market expectations of a flat reading. New orders fell, while prices paid spiked higher. It’s worth noting that survey respondents indicated they expect the pace of price gains to slow somewhat over the next 12-months. Other data showed that US industrial production fell more ... Read More

Dean's FX 15th May.

Thu, 15 May 2008 07:30:03 -0400

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Graph provided by OANDA FXLabs. Click for the full version of FXHeatmap and FXNewsEffects.

The USD$ is weaker in the O/N trading session. Currently it is lower against 12 of the 16 most actively traded currencies in a ‘subdued’ trading range. Yesterday’s US CPI report painted a more lenient picture than the market anticipated. Headline inflation was up by +0.2% vs. the expected +0.3% increase. Core-inflation climbed a modest +0.1% m/m vs. the +0.2% expected. Higher energy costs have not been passed on to consumer prices last month, as energy CPI remained flat m/m. Not surprising, food prices continued to rise, up +0.9% m/m. One would have expected that ... Read More

Dean's FX 14th May.

Wed, 14 May 2008 07:30:03 -0400

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Graph provided by OANDA FXLabs. Click for the full version of FXHeatmap and FXNewsEffects.

The USD$ is stronger in the O/N trading session. Currently it is higher against 14 of the 16 most actively traded currencies in a ‘whippy’ trading range. Traders are starting to believe that the Fed is preparing the market for a rate hiking cycle by the end of the summer. Two Fed members have commented on this front, Yellen (a hike by December) and Stern (saying that policymakers should not wait until the economy has fully recovered before starting to raise interest rates-2.00%). Yesterday, US consumer spending held up in Apr. as sales ex-autos and gas rose +0.6% m/m ... Read More