Dollar on its Back Foot

Highlights The US dollar remains on its back foot. The main driver remains the contrast between the likely trajectory of Fed policy in contrast to the ECB. Moody’s 1-notch downgrade of Spanish credit rating and news that Anglo-Irish needs…

Dollar Soft on Interest Rate Spreads

Highlights The US dollar remains soft, but the downside momentum seen in recent days appears to be ebbing as new catalysts are awaited. The dollar’s slide is not over and bounces are expected to be shallow and short-lived. The main…

India, Brazil, Mexico Update

India:  Earlier today India lifted the cap on foreign ownership of government and corporate bonds.  This had been anticipated, but it runs counter to the rash of media reports suggesting that rise of beggar-thy-neighbor policies…

Color on Weekly Jobless Claims

The weekly jobless claims are not often the stuff that moves the foreign exchange market, but the disappointment with today's data is noteworthy and hitting the the fx market as the foreign currencies began recovering from the profit-taking…

Weak Economic Reports Send Dollar Higher

Highlights The US dollar is recouping some of its recent losses against most of the major and emerging market currencies. Softer than expected New Zealand GDP, followed by the disappointing euro zone flash PMI, the renewed widening of…

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