Forex - EUR/USD Flows: Strong US durables goods orders underpin firm USD tone, but...


 12:55 (GMT) 25 Apr

  [Forex Flows]

Sample Premium Content
EUR/USD Flows: Strong US durables goods orders underpin firm USD tone, but... (0101-KVWZ-C01)

Strong US durable goods orders in March were mainly transport related, but are still supportive for an already strong USD after yesterday's new low for the year in EUR/USD. Even so, at this point it is still noticeable that EUR/USD has fallen without any real impetus from yield spreads, with US yields still struggling to move significantly above 2.5%.

EUR/USD Flows: Strong US durables goods orders underpin firm USD tone, but... (0101-KVWZ-C02)

While a longer term view can still justify EUR weakness, as the rise in the EUR in early 2017 came without any real support from spreads, we would expect some rise in US yields to be necessary if the USD's recent strength is to extend much further. This may well come from tomorrow's GDP data, but with positioning significantly long USD against the lower yielders and Golden Week coming up in Japan, there risks could be more on the downside from a weak GDP number than on the upside from a strong one.


Forex - USD/JPY, EUR/USD Flows: USD strength broadens


 18:50 (GMT) 24 Apr

 [Forex Flows]

EUR/USD struggled for some time with the previous year to date low of 1.1176 before breaking lower, but the USD strength is increasingly broad based, USD/JPY finally making a convincing break move 112.00, ironically on a day when UST yields fell and equities have failed to make any fresh headway (though the equity tone remains firm). Markets are looking ahead to a potential firm US GDP number on Friday, while tomorrow durable goods orders and the recently impressively low initial claims will be eyed.


Forex - USD/CAD, AUD/CAD Flows: CAD supported by oil in what should be a quiet session


 12:13 (GMT) 22 Apr

 [Forex Flows]

A subdued session seems to be in prospect though CAD has seen more movement than most, firmer with oil on the US to eliminate Iran oil waivers after May 2 expiration story. USD/CAD remains in its range with 1.34 still resisting the upside, though AUD/CAD has fallen to levels not seen since Apr 12. Prospects of a more dovish BoC statement on Wednesday should restrain CAD gains, though the BoC is unlikely to be dovish enough to suggest easing is on the agenda.


CurrenciesCountriesMarket Bulletins

Latest Currency Analysis

Available to subscribers only
Order Now