URR News and Press, Morgan Stanley ZC SP REDEEM 30/04/2020 USD 40 From 11/01/20

We believe it’s still important for investors hedging currency risk to remain aware of the cross-currency basis - as a cost or a potential benefit of hedging. The cross-currency basis is the excess premium (or discount) factored into the quoted price of a basis swap (or an FX f...

The dollar had been trading heavily, but it seemed as we entered the last week of October that it was unreasonable to look for a downside breakout given the new acute contagion in Europe and what by all accounts would be a dovish ECB press conference. The one-two punch of the escalate...

The Dow Jones Stoxx 600 dropped almost 3% yesterday, but today is trying to snap a three-day 5.7% slide that brought it to five-month lows. The S&P 500 gapped lower yesterday and settled on its lows. US shares are trading firmer. The greenback is mostly firmer, though the yen ...

Volatility has been rising across all asset classes amid the uncertainty over US elections and a new round of lockdowns. As expected, the US dollar responded positively to the rise in VIX these last few days. We continue to favor risk-off currencies - JPY and USD - in the current ...

Several European countries are experiencing the most fatalities and illnesses in several months, and policymakers are responding with national restrictions. Australia's Q3 CPI was a touch firmer than expected at 0.7% year over year. It is up from the -0.3% rate in Q2. The Canadian...

Japan reported September CPI was unchanged from a year ago after a 0.2% in the 12 months through August. Germany's manufacturing PMI rose to 58.0 from 56.4, which was better than expected. Markit reports its preliminary PMI for the US today. Manufacturing is expected to have edged...

The dollar is consolidating yesterday's losses. Equities are lower, and benchmark yields are little changed. The S&P 500 is trading a little lower following yesterday's 0.2% decline. Gold rose almost 1% yesterday, the most in a couple of weeks, on the back of the weaker do...

EUR/AUD moved significantly higher in February and March 2020, on the back of largely mechanical moves, as capital was repatriated. More recently, the pair has been trading between circa 1.60 and 1.66, although most recently EUR appears to be breaking out versus AUD. While the rea...

The dollar is falling against most of the world's currencies today. Sterling and the Norwegian krone are leading the majors higher. The Chinese yuan extended its gains and is now at the best level since July 2018. In Asia, most of the large markets gained, but China, India, an...

EUR/CAD continues to trade at levels that are materially above the pair's opening price of circa 1.45. New joint debt issuance in the EU appears to show promise as a recent (albeit small) issuance was massively over-subscribed. With greater fiscal harmonization and the prospect of...