There is a combination of seasonal, fundamental and technical factors that could lead to bigger gains in the U.S. dollar which could send EUR/USD even lower in coming weeks. EUR/USD seasonal performance since 2000 shows it has fallen in January for 16 of the past 25 years, or 64% of the time. Meanwhile in February it has dropped in 15 of the last 25 years. However, seasonality patterns should not be considered in isolation, they need to be corroborated with other factors. The dollar has been underpinned by rising Treasury ...

Most Asian equities retreated on Thursday, while currencies were mixed, undermined by growing concerns that U.S. President-elect Donald Trump’s proposed policies may fuel inflation and slow rate cuts. MSCI’s gauge for emerging market stocks CBOE:EFS retreated 0.2%. Stocks in Thailand declined 1.2%, while those in Singapore slipped 0.5% after hitting a more than 17-year high on Wednesday. CNN reported on Wednesday that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. U.S. Federal Reserve officials worry Trump’s ...

The U.S. dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs. The focus for markets in 2025 has been on U.S. President-elect Donald Trump’s agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures. CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal ...

AS the government considers a Foreign Policy White Paper recently completed by a team of eminent persons led by Sir Charles Lepani, it needs to consider for inclusion the global economic compass which is shifting ever so slightly. The United States mighty dollar is coming under pressure from a group of nations calling itself BRICS. BRICS stands for the original members Brazil, Russia, India, China and South Africa. The association membership had already increased to include Saudi Arabia, Eygpt, United Arab Emirates, Iran and Ethiopia. Another 23 countries have shown ...

UK investors added a record 27.2 billion pounds ($34 billion) to their stock holdings in 2024, funds network Calastone said on Wednesday, as a surge in investments in index-tracker funds dominated. The net inflows into equities topped the previous highest mark of 19.8 billion pounds set in 2021 in Calastone’s 10-year data set, with surging inflows into passive products behind the jump, up from 8 billion pounds of inflows in 2023. The popularity of index-tracking products offered by the likes of U.S. investment giants BlackRock and Vanguard has been reshaping ...

The dollar stood tall on Wednesday boosted by elevated Treasury yields after strong U.S. data rekindled worries of a rebound in inflation, leaving European stocks staring at a weak open as traders brace for diverging policy paths. While traders are getting used to the idea of a measured interest rate cutting cycle from the U.S. Federal Reserve, they expect deep cuts from the European Central Bank even after data on Tuesday showed euro zone inflation accelerated in December. Markets are pricing in 99 basis points of easing from the ECB ...

The U.S. dollar rose for a second straight session on Wednesday as U.S. bond yields continued their recent advance, following a report that President-elect Donald Trump was contemplating the use of emergency measures to allow for a new tariff program. The yield on the benchmark 10-year U.S. Treasury note hit 4.73%, its highest level since April 25, after CNN reported Trump is considering declaring a national economic emergency in order to provide legal footing for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said ...

A sharp selloff in some of the world’s biggest government bond markets and a surge in the dollar are sending shockwaves through financial markets, with the pain seen deepening as uncertainty grows over Donald Trump’s policies. On Wednesday, 10-year Treasury yields, underpinning trillions of dollars in daily global transactions, jumped to above 4.7%, their highest since April, and UK peers hit their highest since 2008. This unleashed a fresh wave of selling in currencies, including sterling, which slid over 1%, and the euro headed closer towards the $1 mark. Central ...

NASDAQ-Adv: 3,071 Dec: 7,224 NYSE-Adv: 1,325 Dec: 2,829 (Source: Nasdaq)

Global stocks slid, with European shares set for a weak open on Wednesday as worries over U.S. inflation resurfaced and bond yields spiked, boosting the dollar and keeping the yen, yuan and euro near multi-month lows. After losses in Asia and Wall Street overnight, European bourses were due to open lower after data showed the U.S. economy and labour market remained stable, spurring expectations that the Federal Reserve will be measured in its rate cutting cycle. Eurostoxx 50 futures were down 0.3%, while German DAX futures fell 0.23%. Rising bond ...

Overseas investors turned net sellers of Asian equities in 2024, primarily due to a surge in selling in the last quarter amid concerns that U.S. President-elect Donald Trump’s trade policies might hit Asian economies. They sold a net $15.8 billion worth of equities in Taiwan, South Korea, India, Thailand, Indonesia, Vietnam and the Philippines last year, after buying $26.6 billion in 2023. They had invested $14.67 billion in the first three quarters, encouraged by expectations of Federal Reserve easing and regional growth. But they later shifted to accelerated selling, hit ...

USD: Re-strengthening Markets have been tempted in the past couple of days to believe there is some truth behind the Washington Post’s report – quickly rebuked by Trump – that US tariffs will be only on selected products. We are also looking with interest at the timeline for the US Congress’ plan to pass a three-in-one bill for taxes, border and energy. Speaker Mike Johnson has set a rather ambitious April deadline, and that could suggest the new administration will have to focus efforts on domestic policies and at least ...

U.S. companies rushed to the corporate bond markets on Monday as what is usually a seasonal fund-raising spree over the first few days of a new year gained extra momentum to get ahead of any further rise in Treasury yields – which would increase funding costs – after jobs data on Friday. Some 22 companies were offering new bonds in the U.S. investment-grade bond market on Monday, taking the tally of new borrowers to 34 in the first few days of 2025. Syndicate bankers expect to see companies raising nearly ...

Traders considering adding to the speculative dollar long position should be mindful that the dollar’s price action could be an early warning that its recent uptrend may be coming to an end. The speculative long position – derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars – has risen to its highest level since April. For the week ending Dec. 31, the value of net positions held by speculators climbed to $29.20 billion long from $27.70 billion a week ...

NASDAQ-Adv: 7,813 Dec: 2,454 NYSE-Adv: 3,130 Dec: 1,032 (Source: Nasdaq)