Overview: The NASDAQ rallied 1% yesterday to record highs as the Dow Industrials struggled, and the S&P 500 was able to eke out a small gain. The coattails were short, and the strength of the yen may have contributed to a 0.2% loss of the Nikkei. Still, its 6.2% advance this month is the best …
Canada Shrugs Off Loss of Morneau and Gold Reclaims $2000 Threshold Read More »
Overview: A rotation of sorts seems to be unfolding. The euro posted its second back-to-back loss in over a month. The Canadian dollar, which has been an under-performer among the major currencies for the past six weeks, gained, while most fell. The Dow Industrials and S&P 500 rose, the high flying NASDAQ fell for the …
Gold and the Dollar are Sold while Stocks March Higher Read More »
Overview: The Australian dollar powered to marginal news highs for the year as the move against the US dollar continued yesterday. The euro stopped a few hundredths of a cent below the high seen at the end of last week. However, neither sustained the upside momentum and have come back offered today. The greenback is …
Overview: The drop in US yields to new lows amid paralysis in Washington, except apparently over a lip-syncing app’s threat to US national security, sent the dollar back to its lows after a modest recovery in early North American trading yesterday. The greenback remains under pressure today, falling against most of the world’s currencies. The …
Corrective Pressures in the FX Market Prove Short-Lived Read More »
There is no reason to expect the investment climate is going to change next week. The key drivers remain the same. The resurgence being seen in the virus is posing a speed bump in the re-opening and recovery process. The work of monetary and fiscal policy is not over. The low real and nominal interest …
Data and the Virus may Determine the Magnitude of the Dollar’s Bounce Read More »
Overview: The powerful momentum moves in the capital markets continues unabated by escalating US-China tensions and continued spread of the virus. Asia Pacific equities were mixed. Tokyo was closed for a holiday, but several other large markets in the region, like China, South Korea, and Taiwan markets slipped lower, while Hong Kong, Australia, and India advanced. …
Powerful Momentum is Still Evident in the Foreign Exchange Market Read More »
Overview: Turn around Tuesday began yesterday with a key reversal in the high-flying NASDAQ. It soared to new record highs before selling off and settling below the previous low. The S&P 500 saw new four-month highs and then sold-off and ended on its lows with a loss of nearly 1% on the session. Asia Pacific shares …
Overview: The resurgence of the contagion in the US has stopped or reversed an estimated 40% of the re-openings, but the appetite for risk has begun the second half on a firm note, helped by manufacturing PMIs that were above preliminary estimates or better than expected. Except for Tokyo and Seoul, equities in the Asia …
Second Verse Can’t be Worse than the First, Can it? Read More »
Next week is important. Two G7 central banks meet and at least half a dozen emerging market central banks. There is a European Summit and perhaps a political effort to reinvigorate the UK-EU trade talks, which seem to be crashing on the shoals of stubbornness. The ECB offers its most generous long-term targeted loan that is …
The US and UK markets were closed on Monday. Together they accounted for almost two-thirds of the turnover in the foreign exchange market. The dollar was narrowly mixed against the majors. The dollar bloc and sterling ticked a little higher, and the euro and yen were a touch heavier. The illiquidity seemed to weigh on …