Author: FX
We have a massive slate of mega-cap tech, critical industrial bellwethers, and the titans of energy all reporting next week.The key theme will be justification. Valuations are stretched in the tech sector, and the market needs to see not just beat-and-raise quarters, but clear evidence that AI capex is going to translate into revenue. On the macro side, we are looking for signs of cracking in the consumer data from the credit card giants and shipping volumes from the logistics heavyweights.MondayMonday is relatively light, giving markets a moment to position before the volatility ramps up.Before Open: We get a look…
Currency markets whipsawed through a week dominated by President Trump’s dramatic Greenland gambit, which sparked a “Sell America” wave before his midweek about-face triggered sharp reversals across the board. The action kicked off with Trump’s weekend threats to slap 10% tariffs on eight NATO allies opposing his Greenland bid, sending the dollar tumbling and safe havens soaring as traders questioned Washington’s commitment to its allies. The pivot came during Trump’s Davos appearance, where he ruled out military force and announced a framework deal, effectively canceling the threatened levies. That de-escalation sparked powerful risk rallies that flipped the week’s script,…
EUR/USD registers solid gains late in the North American session on Friday after rumors of an intervention in the FX markets to boost the Japanese Yen sent the US Dollar (USD) sliding, with losses of over 0.70%, according to the US Dollar Index (DXY). This, despite the economic data being moderately positive on Friday. At the time of writing, the pair trades at 1.1811 after hitting a four-month high of 1.1826 earlier during the day.Euro rallies sharply as speculation of FX intervention sends the Dollar to multi-month lowsA Bloomberg headline, “Yen jumps most since August as risk of intervention ramps…
Markets:WTI crude oil up $1.77 to $61.13US 10-year yields down 1.6 bps to 4.235%Bitcoin flat at $89KS&P 500 flatGold up $44 to $4980, a fresh recordSilver hits $100 for the first time, continues to $102JPY leads, USD lagsThe newsflow was light but it certainly wasn’t a quiet Friday in North American trading. There were some big moves in commodities and FX but very little to point to as catalysts. In the absence, rumours filled in the gaps.The big one was that the Japanese Ministry of Finance did a rate check, essentially calling banks and asking for quotes. That’s a trivial…
Gold (XAU/USD) surges during the North American session on Friday, up by over 1% as the US Dollar (USD) gets smashed on intervention rumors to propel the Japanese Yen (JPY) in the FX markets, amid an improvement in risk appetite that pushed the yellow metal to fresh all-time highs at $4,988.Bullion hits fresh record highs as sharp Dollar losses outweigh improving risk sentiment and steady yieldsMarket mood remains upbeat, yet Bullion prices continue to run up as the US Dollar tumbles to its lowest level since October 2025. The US Dollar Index (DXY), which tracks the buck’s performance against a…
Politico reports:The Trump administration is weighing new tactics to drive regime change in Cuba, including imposing a total blockade on oil imports to the Caribbean country, three people familiar with the plan said Thursday.American built up a lot of force in the Caribbean for Venezuela, maybe they redirect it to Cuba, or maybe that was the plan all along.Marco Rubio is said to be leading the push. His parents were born in Cuba but came to the US three years before the revolution. Other members of the family fled as refugees afterwards.A blockade is a brutal escalation and an act…
The US Dollar (USD) ended the week near a four-month low of around 97.80, maintaining a weak tone amid risk aversion in financial markets. Concerns escalated after US President Donald Trump threatened to impose 10% tariffs on eight European countries, which would increase over time unless Denmark agrees to sell Greenland to the US. Tensions remained high until Trump, along with NATO Secretary General Mark Rutte, announced a framework for a future deal regarding Greenland on Wednesday.In addition, the US released updated data on its Gross Domestic Product (GDP) for the third quarter (Q3), revising the annualized growth rate for…
USD/JPY plunges over 300 pips on Friday amid a suspected Japan Ministry of Finance (MoF) ‘rate check’, as excessive Yen (JPY) weakness fuels intervention fears. At the time of writing, the pair is trading around 156.18, down nearly 1.40% on the day, sliding to its lowest level since late December.At the same time, broad-based weakness in the US Dollar (USD) is adding to the downside pressure, as concerns over Federal Reserve (Fed) independence and US President Donald Trump’s protectionist trade policies continue to erode confidence in the Greenback, despite a recent easing of US-European Union (EU) trade tensions.The US Dollar…
The British Pound (GBP) continues to outperform the US Dollar (USD) on Friday, with GBP/USD climbing to the 1.3600 handle as the Greenback remains under broad-based selling pressure. At the time of writing, the pair is up nearly 0.73% on the day, marking its highest level since September 18, 2025.Sterling is also drawing support from stronger-than-expected UK economic data, which has tempered near-term rate cut expectations at the Bank of England (BoE).The flash Composite Purchasing Managers Index (PMI) rose to 53.9 in January from 51.4, with the Services PMI jumping to 54.3 from 51.4, while the Manufacturing PMI improved to…
Eyes are on the yen on a big move lower in USD/JPY ahead of the weekend. The pair is down 202 pips on the day now to 156.40, which is a sharp reversal after rising to 159.22 when the Bank of Japan left rates on hold.USDJPY 10 minutesThere is some chatter that’s unconfirmed that Japan’s Ministry of Finance (which controls FX intervention) ran a rate check. That’s where they call around to banks and ask for current yen prices. That kind of move is a bit of theater but it’s a signal to everyone that they’re closely watching the market,…