Tag: Usd

Usd

US Elections: After the Panic

“Following the US election, global markets have reacted in predictable panic. Equity markets [and] the dollar sold off and gold rallied,” notes Kerim Derhalli, CEO of invstr.

Profit & Loss previously reported on the immediate aftermath of the surprise US election victory for Donald Trump, but the question facing markets now is: what next?

“Key will be now whether or not Trump will prove to be a populist or a pragmatic president,” says Valentijn Nieuwenhuijzen, chief strategist and head of multi-asset at NN Investment Partners.

Mapping the Scenarios for Today’s Election

Today marks the conclusion of an acrimonious US Presidential race, with two candidates promising very different approaches to handling the US economy. As a result, analysts have been furiously mapping out the potential impacts of either result.

If Clinton wins:

Analysts at ING predict that in the case of a Clinton win USD will retrace its pre-election losses and re-couple with Federal Reserve expectations.

“Latest breakout of wage growth from post-crisis range means a Clinton win should see markets (fully) price in a Dec Fed rate hike,” they note.

US Elections: What Does the USD Data Suggest?

TraderMade’s chief technical analyst, Steve Jarvis, has put out some interesting research looking at USD trading patterns around past presidential elections to see if there is any indication of what to expect in the upcoming one.

Using a USD trade weighted index chart for his analysis rather than specific FX rates, Jarvis looked at how the USD moved during the two months leading up to the previous seven US presidential elections and the two months after.

Going back to 1988, Jarvis highlights who was elected, their defeated opponent, and includes the percentage change for the USD index for the two months before and after the election, as well as the net change over the four-month period.

OTC Clear Claims First in USD/CNH Swaps Clearing

OTC Clearing Hong Kong (OTC Clear) has launched a clearing service for cross-currency swaps (CCS), which will initially focus on swaps in the USD/CNH currency pair. OTC Clear is the first international clearing house to provide clearing for USD/CNH CCS, the company claims in a statement. The firm provides a Payment versus Payment – or […]

Icap Launches CNH Benchmark

EBS BrokerTec and Icap Information Services (IIS) have launched EBS CNH Benchmark, the first fully electronic, trade-backed reference rate for the offshore Chinese renminbi (CNH) market, according to Icap. The benchmark is published daily at 16:30 Beijing/8:30 GMT, and is timed to coincide with the onshore renminbi (CNY) market close. “We chose to publish it […]

Scandis Under Pressure from Brexit, but Risk Appetite Coming Back

Risk aversion generated by the Brexit vote has seen Scandinavian currencies more than others coming under pressure along with sterling. In particular, the Norwegian krone and Swedish krona have been hit by the downward trend. However, market analysts contacted by P&L suggest the move might not last. “The NOK acted similarly as other ‘risky’ currencies […]