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Sentiment against the dollar is deep-rooted. Every time we have a pullback in euro/dollar new buyers emerge.
No one can find a good reason to buy the euro at the moment. The only thing that could turn the tide is intervention, possibly accompanied by soft U.S. data.
No one can find a good reason to buy the euro at the moment, ... The only thing that could turn the tide is intervention, possibly accompanied by soft U.S. data.
Monetary policy expectations were the driving forces on the FX markets in most of 2005 and while we expect structural problems to come back to haunt the dollar in 2006 we expect monetary policy expectations to lend support to the greenback early in the year.
Monetary policy expectations were the driving forces on the FX (foreign exchange) markets in most of 2005 and while we expect structural problems to come back to haunt the dollar in 2006 we expect monetary policy expectations to lend support to the greenback early in the year.
Given that the dollar was unable to really bounce on the back of lower than expected trade deficit yesterday, it seems a bit unlikely that even if the retail sales show nice gains that (it) will be able to really benefit from such data.
It got a boost from comments from Poole overnight so that brought euro/dollar down by half a big figure.
It is more a squaring of positions than suddenly people seeing anything positive about the dollar. Intervention has a limited and short-lived impact. It has not started an uptrend in dollar/yen.
Japanese officials make statements like that when we see very rapid movements in the foreign exchange markets because they are concerned such moves can build into stronger trends.
People are saying the report suggests that rates won't rise rapidly, and that's not positive for the yen.
People are reassessing the U.S. economic outlook because they had thought the recovery was jobless. People are beginning to price in the chance of a rate hike by August.
People already have a more positive view of the European economy, so they are not that fussed. The market is a bit tired after all the dollar selling this week.
Risk aversion is rising in the market and investors are nervous about what will happen when U.S. equities open.
We have had disappointing data in the United States this week and in the euro zone we have had comforting news. If we get a weak GDP number no one would want to hold onto long dollar positions next week.
We do expect broad-based dollar weakness to resume when or shortly after the U.S. Federal Reserve begins to signal the end of the current tightening cycle.
Even though there was a reasonable GDP figure the market was unwilling to give the yen good support. There's a consensus building that the BOJ isn't going to move quickly and that means the good news for the economy isn't enough to boost the yen further.
The tone from the Bank of Canada has softened lately and upbeat data are needed to intensify rate hike expectations.
The bottom line is that the door is more open for a rate hike and the market is convinced we will have another rate hike.
A lot of investors want to hang on to short dollar positions. In the current environment, you don't want to fight the trend.
There's a consensus building that the BOJ isn't going to move quickly and that means the good news for the economy isn't enough to boost the yen further.
There may be a few flows from some parts of Europe, but there are no major flows, and there's certainly no fresh news to trade, and there's been no surprises.
It's a very strong signal and positive for the euro,
Forces driving the dollar are still the same, concerns about the current account deficit. A rise in sterling, triggered by strong UK data, is also contributing to dollar weakness,
It's too early to conclude it's the end of the dollar rally. Data in the U.S. should continue to be healthy and we could see rate expectations moving higher, supporting the dollar.
The minutes were quite dovish in the sense that the Fed seems very close to the end of its tightening cycle, so I think the market move is justified.
The minutes confirmed the current pricing of rate hikes in the market.
In the U.S. yesterday, we had good data.
Higher oil prices, and fears over Japanese stocks are affecting the dollar more than any other currency.
Higher interest rates make it much more comfortable for Japanese investors to be holding dollars. The chances of rate increases in the U.S. continue to rise while in Japan the prospects are much less certain.
By saying China is a manipulator the U.S. would put more pressure on China to let the yuan appreciate faster and indirectly that would mean a slightly weaker dollar.
The impact on the euro from last week's rate hike is evaporating ... There's nothing to intensify rate hike expectations in the euro zone.
The current rate expectations are still supportive for the dollar. But now the market needs to be assured by upcoming economic data.
The market will be watching the consumer prices report, as the minutes have made it clear the Fed is watching inflation. The economic data has been strong and supportive for the dollar.