FX market is not balanced before the end of the day

[Lei]

2021.11.01 early session: Dollar holds gains after month-end buying flows. JPY weakness not a concern. Equities gain.

 

[Lei]

2021.11.01 whole day end: Dollar turned down due to lower manufacturing data, FX mixed. While equities keep rallying. CHF is the strongest today.

 

[Lei]

2021.11.02 early session: AUD drops after the RBA, risk aversion push JPY strongest. Dollar keeps firmer for the most part so far today. European equities move higher except UK FTSE.

 

[Lei]

2021.11.02 day end: Risk aversion all day. Although equities keep up trends well, Bond rates are lower much than last week, esp. European area. This perhaps on position squaring on the Fed, perhaps on pushing the rate hike and inflation narrative too far, too fast.

 

[Lei]

2021.11.03 Wed mid of the day: Bond yields continue to pull back ahead of the Fed later today. FX keeps a quiet day till now, Kiwi had a good looking job report, while NZD had a rise to recover only half of yesterday loss. Generally, risk aversion dominates before Fed.

 

[Lei]

2021.11.03 Day End: Dollar dips after Fed tapers: On the hawkish side, they gave themselves room to manoeuvre from the $15B pace but on the dovish side, they kept transitory language. In the press conference, Powell said they can be patient in waiting for bottlenecks to clear. Overall those are small moves and that reflects a Fed that behaved largely as expected.

 

[Lei]

2021.11.04 Early Session: USD catches a bit of a bid in the Asia session, and keeps more bids in European morning trade. Oil's up, equities keep rallying. FX is risk aversion, due to strong USD, but equities tell a different story. Watch out for this!

 

[Lei]

2021.11.04 Day End: Powell's comments about transitory inflation and the BOE surprise decision to hold rates today underscore, GBP slumps, JPY gets the benefit. OPEC to hike production by 400k bpd, Ugly reversal as oil settles lower for the second day. Equities keep high.

 

[Lei]

2021.11.05 Early Session: AUD and NZD lose a little ground in Asia session, Dollar holds firmer ahead of payrolls. GBP lags. There is no clear theme before NFP. Equities keep gaining of the European area.

 

[Lei]

2011.11.08 Mon Early Session: FX market moved in a limited range, risky trades continue recovering. Equities mixed, gold hold gains. Over the weekend, China recorded its largest trade surplus (so far). Musk rattles NASDAQ.