With the media playing up the US dollar’s negatives, one would think speculators are short the greenback like there is no tomorrow. Yet a review of the Commitment of Traders report that covers the week through last Tuesday, August 4, shows that this is not really the case. Below the speculative positioning of four currency …
Speculative Positioning in Selected Currency Futures Read More »
Overview: A 9.8% contraction of the Chinese economy in Q1 did not derail investor optimism today, which saw Asia Pacific stocks rally strongly after Gilead reported very preliminary positive testing of its drug to fight the coronavirus and plans to re-open are developing. Japan’s Nikkei and South Korea’s Kospi surged more than 3%. The MSCI Asia …
The Dollar and Equities are Finishing the Week on Firm Footing Read More »
In the old world that ended sometime last month, the peso was a king. It was among the strongest currencies in the world and appreciated against the US dollar for the past three years. It appreciated nearly 10% against the greenback, which itself was rising against most currencies. Mexico is poorly placed to deal with the …
Overview: The capital markets are heading into the weekend, still trying to look past the coronavirus despite the new cases in Hubei. Tokyo was a notable exception in the Asia Pacific region, as the other major equity markets, like in Hong Kong, China, Taiwan, South Korea, and Australia, advanced. The MSCI Asia Pacific Index rose for …
Overview: The capital markets have turned quiet as the year-end positioning drives prices in lieu of fresh developments. Equities in the Asia Pacific region were narrowly mixed.T he smaller markets in Asia performed better than the large bourses of Japan, China, and Korea, which eased. European equities are off to a firm start, and the Dow …
Markets Turn Quiet Ahead of Central Bank Meetings Read More »
Trade, central bank policy, and Brexit dominated the investment climate in September. The US-Chinese trade conflict stopped escalating. Although face-to-face talks are planned in October and the list of exemptions from the punitive tariffs has increased (US soy and pork, for example, are now exempt as are 10 components of Apple’s Mac Book Pro from …
Overview: Equities remain under pressure. The MSCI Asia Pacific Index lower today, though Chinese and Australian shares were firmer. It is the second consecutive week the benchmark has fallen. European equities are firmer, but not enough to offset the losses earlier this week and are set to snap a five-week advance. US shares are firmer, and …
The dollar was mostly weaker against the major currencies last week. The Swiss franc and Japanese yen were joined by the seemingly unlikely candidate, the Swedish krona, to have gained about 1% against the US dollar last week to the lead the majors. The yen and franc’s gains extended moves already underway and perhaps, accentuated …
Overview: The challenges for investors have not gone away, but a combination of factors has helped stabilize the capital markets. The PBOC set the dollar’s reference rate above CNY7.0, but not as high as anticipated, and this has seen the yuan strengthen modestly today. Meanwhile, the strong recovery in the S&P 500 has spilled over …
PBOC Helps Stabilize CNY, while US Equity Recovery Lifts Sentiment Read More »
Overview: The prospect of a no-deal Brexit continues to pound sterling lower. A little more than two months ago, it was testing $1.32. Two weeks ago it was around $1.25. Today it traded near $1.2120 before stabilizing. On the other hand, the 10-year Gilt yield is below 65 bp, a new multiyear low, while the …