Macroeconomic Environment Review The US dollar advanced modestly further in January following the near 8% gain in Q4 last year. The dollar weakened during January as President Trump failed to announce any tariffs during the inauguration. However, the strengthening of the dollar into month-end reflected the fact that the Trump administration was planning to implement […]
Macroeconomic Environment Review The US dollar surged by 7.0% on a DXY basis in 2024 after a 2.3% drop in 2023. It was the third year in four when the dollar advanced by over 5.0%. All of the dollar strength in 2024 came in the final quarter of the year as market participants positioned for a […]
Macroeconomic Environment Review In November, the US dollar experienced a notable appreciation against the euro, rising from 1.0859 to 1.0550. However, it depreciated against the yen, declining from 152.43 to 150.44. This movement followed the Federal Open Market Committee’s (FOMC) decision in November to reduce the federal funds rate by 25 basis points, bringing the […]
Macroeconomic Environment Review October was a month of gains for the US Dollar that saw its relative performance against its peers strengthen even as the Federal Reserve started implementing its rate-cut policy. The EUR/USD dropped heavily to trade all the way down to 1.08 while Sterling saw losses down to 1.29. Volatility was elevated and […]
Macroeconomic Environment Review September saw improved sentiment across financial markets, with rallies in stocks, declines in Treasury yields, and rising gold prices. In the FX markets, the USD Dollar Index fell 1.1%, with the dollar weakening across a range of currencies, particularly against high-beta currencies like the Australian dollar and the British pound. Emerging market […]
Macroeconomic Environment Review The foreign exchange market experienced significant volatility in August, primarily driven by the sharp decline in the USD/JPY pair. Shifting expectations regarding central bank policies, coupled with concerns about the US economy and corporate earnings, fueled the market’s movement. The decline in USD/JPY had a ripple effect across Asian currencies, leading to […]
Macroeconomic Environment Review The FX market witnessed increased volatility in July. The US Dollar Index came under pressure as market participants reassessed the Federal Reserve’s monetary policy path. While the Fed reaffirmed its commitment to bringing inflation under control, there were several indications that suggested that the US central bank would cut rates in September, […]
Macroeconomic Environment Review The US dollar experienced a significant depreciation in May, losing ground against most major currencies. This shift in dominance stemmed from two primary factors. Firstly, some key economic data releases in the US surprised on the downside, raising concerns about the pace of economic growth. This sparked investor anxieties about the overall […]
Macroeconomic Environment Review April 2024 proved to be a month of mixed signals and cautious optimism in financial markets. While the Federal Reserve’s hawkish stance on inflation was anticipated, the lack of clarity on the timing of future rate cuts sent shockwaves through various asset classes. In the foreign exchange market, the story wasn’t a […]
Macroeconomic Environment Review The US dollar strengthened, albeit unevenly, against other currencies in March. We believe this trend will likely continue throughout the year, influenced by central bank actions and global economic conditions. We expect Europe to lead the way in interest rate cuts, with the Swiss National Bank nearing the end of its easing […]
Currency markets stuck between risk on/off sentiments – Month in Review: June 2021
Macroeconomic Environment Review During June the Dollar bounced on the back of the Fed meeting. The...
A flurry of mixed signals keep markets looking for direction – Month in Review: January 2024
Macroeconomic Environment Review January 2024 brought a continuation of the mixed signals observed i...
