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US and Chinese trade negotiators kicked off another round of talks today after President Trump labeled last week’s discussions in Beijing “very productive.” Today and tomorrow feature lower-level officials to the table, with higher-level policymakers including US Trade Representative Lighthizer, Treasury Secretary Mnuchin, and Vice Prenier Liu He, c...

With both the US and Canada out on a bank holiday, we’re seeing a relatively quiet session in the FX market. As the chart below shows, the dollar index is falling for its third consecutive day after rally though the first seven days of the month.

In the middle of the week, the RBNZ opted to leave its primary interest rate unchanged at 1.75%, where the central bank expects it to remain for a “considerable period.” Governor Orr and company noted that there were both upside and downside risks to inflation; therefore, the next change to interest rates could either be higher or lower.

If you had checked USD/CHF’s exchange rate at Friday’s close and a mere 30 minutes after Monday’s open, you wouldn’t think anything was amiss…at least if you didn’t have any stop losses within 100 pips!

FX trade is well underway for the week, and so far, last week’s theme of US dollar strength has carried over into this session’s trade. The most interesting development among the major currencies is today’s big breakout above 110.00 in USD/JPY, a move that’s taken the pair to its highest level year-to-date.

Mirroring last week’s shift at the Federal Reserve, the RBA has now shifted its future interest rate expectations into neutral.

After turning in the strongest performance among the major currencies yesterday, the US dollar is once again near the top of the relative strength charts today.

With most Asian markets on holiday for the Lunar New Year celebration, Aussie traders on the sideline ahead of tonight’s monetary policy decision, and many US traders out of the office for the informal post-Super-Bowl-Monday-“Holiday,” we’ve seen a predictably slow start to this week’s trade in the FX market.

In a different environment, today’s Non-Farm Payrolls report would have led to fireworks, rather than the “wet blanket” market reaction that we’ve seen so far.

With seemingly every member of the Federal Reserve emphasizing that the central bank would be “patient” following its December interest rate hike, it came as no surprise that the Fed left interest rates unchanged today. And, despite the speculation that Chairman Powell and Company could revisit their balance sheet rundown strategy, the central bank ...

For once, the weekend brought little in the way market-moving economic developments, and with Australian traders out on holiday, the FX market has seen a quiet start to the week.

When yesterday’s dueling Democratic and Republican proposals to open the government both failed to garner nearly enough votes in the Senate, it assured that 800,000 government employees would go a whole month without receiving a paycheck. However, it’s often said that “the night is darkest just before the dawn,” and there are some signs that yesterd...