Why the dollar ain't smiling 

Why the dollar ain't smiling 

(ATF) Nineteen years ago, former Morgan Stanley currency strategist Stephen Jen invented the "dollar smile" theory: as a safe haven, the US dollar appreciates against all competitors in times of crisis; as the crisis recedes and risk capital flows out again, the dollar weakens; and, as the global economy picks ...

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What keeps driving USD down and CNY well-supported?

What keeps driving USD down and CNY well-supported?

(ATF) I wrote a couple of weeks ago that I was highly – and caustically – sceptical of the forecast of a Goldman Sachs strategist who saw the USD rise to 7.25 against the Chinese currency. Currency pairs don't always follow a path of relative economic performance. The Japanese yen, ...

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Will HKD-USD peg survive escalating China-US tensions?

Will HKD-USD peg survive escalating China-US tensions?

(ATF) The Hong Kong dollar, since 1983, has been tied to the US dollar through a currency board arrangement, which specifies the exchange rate at 7.8 HKD to one USD, and a permissible trading range of HKD7.85-7.75. Whenever the exchange rate nears or touches either end of the band, the ...

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Yuan shakes off new virus cluster in NE China's Hebei province

Yuan shakes off new virus cluster in NE China's Hebei province

(ATF) When new virus clusters were discovered and followed up by lockdowns in Northeast China' Heilongjiang province and in Beijing in late May and early June, the Chinese currency took a significant hit each time. The danger of arrival of a second wave looked large and with it the chances ...

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US Covid cases rise at record pace, FX impact negligible

US Covid cases rise at record pace, FX impact negligible

(ATF) The US recorded 37,000 new Covid-19 cases on Thursday, the highest number since April 24. So, why do we see no significant FX action? The dollar index (DXY) barely moved in Asian trading on Friday and stood at 97.3380 at 7pm HK time, virtually unchanged from the open at ...

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Virus stress is back, and with it, the US dollar

Virus stress is back, and with it, the US dollar

(ATF) Chinese markets are on holiday for the Dragon Boat Festival. So we can only guess how they might have reacted to Wednesday's US equities sell-off. Most likely the reaction would have been muted, much as today's action in European stocks so far. The United States has put on display ...

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US virus surge, dollar slumps, yuan gains

US virus surge, dollar slump, yuan gain

(ATF) Virus cases are surging in US hotspots Florida, Texas, Arizona and California and are making a comeback in New Jersey and New York, where the end of pandemic conditions appeared in sight. The daily case increase across the US was 35,695 on Tuesday. New cases globally are showing no ...

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