Boris and Kathy Forex Weekly – 4-12-2017 – Crosses
December 3, 2017 10:30 pm
FX – December Kicks off with a Bang, More FX Volatility Ahead By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. The last month of the year kicked off with a bang. Currencies, equities and Treasuries were hit by major intraday volatility that resulted in a rollercoaster ride for all investors on Friday. The moves in the forex market were led entirely by the wild swings in the U.S. dollar, which see-sawed with every incoming news headline. Investors tried to decipher the ramifications of each story quickly, but as the dust settled it is still not clear whether the prospect of tax reform or the threat of President Trump being indicated for obstruction of justice will have greater long-term impact on the markets. The dollar ended the week lower against the British Pound, Swiss Franc and Canadian dollars and higher versus the Japanese Yen and New Zealand dollar. It was virtually unchanged against the euro and Australian dollar. Although these moves are not consistent, on balance the U.S. dollar performed well in the front of the week and suffered greatly towards the end. These divergences stemmed from the relative outperformance of these currencies versus the dollar on Friday. For example, AUD and NZD soared while EUR and GBP barely saw gains.
FX – December Kicks off with a Bang, More FX Volatility Ahead By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. The last month of the year kicked off with a bang. Currencies, equities and Treasuries were hit by major intraday volatility that resulted in a rollercoaster ride for all investors on Friday. The moves in the forex market were led entirely by the wild swings in the U.S. dollar, which see-sawed with every incoming news headline. Investors tried to decipher the ramifications of each story quickly, but as the dust settled it is still not clear whether the prospect of tax reform or the threat of President Trump being indicated for obstruction of justice will have greater long-term impact on the markets. The dollar ended the week lower against the British Pound, Swiss Franc and Canadian dollars and higher versus the Japanese Yen and New Zealand dollar. It was virtually unchanged against the euro and Australian dollar. Although these moves are not consistent, on balance the U.S. dollar performed well in the front of the week and suffered greatly towards the end. These divergences stemmed from the relative outperformance of these currencies versus the dollar on Friday. For example, AUD and NZD soared while EUR and GBP barely saw gains.
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