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The surprised dovishness of the Fed is leaving its mark on the rates market and USD. In our view, it seems as though USD may be returning to where it was in February, unable to decide whether to appreciate or to depreciate in the medium term. As our

JPMorgan technical analysts nibble on a euro short Earlier, the technical analysis team at JPMorgan says there is a "good risk reward" to enter a "careful" short position in EUR/USD. The trade goes against all the rules about picking tops/bottom and

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While reading into the cross-market impact on the dollar from equity and rate markets has been somewhat challenging lately, we believe most scenarios will leave the USD on the defensive. If risk continues to rally with only limited US yield upside

Negative interest rates erode the profitability of the banking sector and pose a threat to financial stability. In exchange, they offer an economic stimulus that is mild at best and that has actually been seen to backfire in some regions. The world

The dovish outcome of the March Fed meeting dealt a blow to the FX divergence trade and it has sent the USD tumbling of late. We doubt that this is the end of the multi-year USD bull-run, however, and see the current levels as an opportunity to

One of the more surprising market developments of 2016 has been the violent obliteration of those who had taken part in the biggest consensus trade of 2015, namely long the USD. As the Fed finally admitted earlier this week, the US economy is

The euro remains in a bullish trend and might continue higher in the coming days, despite not much EU data being on the agenda, but on the other hand, US figures might undermine the greenback further and send the pair to new cycle highs. On Monday

The Fed didn’t say much in its statement, so investors were left to zero in on the dot plots. And with the median going down from four hikes in 2016 to only two, markets decided that the Fed isn’t confident in its just started hiking cycle. Having

It's Monday so that means it's trade of the week day! Morgan Stanley are out with their latest and they say sell cable because of the political news and if commodities and equities move lower. They say sell it for a profit target of 1.3900 and stop

The ECB will be in focus when it meets on Thursday, notes Morgan Stanley. "With negative rate criticism becoming widespread, reaching from the G20 towards a weekend report by the BIS suggesting that long-term costs of negative rates exceed short-term

The ECB needs to surprise this week, not because of markets, but because – given the trend in core inflation – the existing policy mix is behind the curve. Given the political economy within the ECB and what is now priced in money markets, we think

Westpac 'high conviction trade' added Analysts at Westpac added a short EUR/USD trade ahead of the ECB decision. They write in a note to clients: "Last week's two bearish signals out of three producing a sell on strength order that was filled at

. Deposit rate: current -0.30% SG forecast: -20bp to -0.50% Consensus: -10bp Forecast range: no change to -20bp 2. Asset purchase programme : current €60bn/month until March 2017 (sovereign, ABS, CB) SG forecast: no change Consensus: no change, 60%

Despite widespread expectations of European Central Bank easing at this week's meeting, the euro maintained a firm tone around $1.1000 Wednesday. The market fretted a repeat of the December meeting, where the euro popped over four big figures higher

The European Central Bank (ECB) cut the deposit rate further into negative territory, from -0.3% to -0.4%, while the main refinancing rate was surprisingly cut as well from 0.05% to 0.00% and the marginal lending facility was lowered by 5 basis

The euro has strengthened sharply following the ECB’s announcement of more aggressive easing, notes BTMU. " The counter intuitive reaction sends a bullish signal for the outlook for the euro in the near-term. EUR/USD may now attempt to retest the top

The ECB delivered significant easing measures on Thursday, lowering its depo rate by 10bp, cutting its refi rate by 5bp, increasing the run rate of asset purchases, adding scope to purchase corporate debt and announcing additional long-term repo

President Mario Draghi's remark during the ECB press conference yesterday that the bank is done cutting rates for now sent EUR soaring and European stocks and bonds tumbling, completely undoing the impact of the aggressive easing measures announced