Gold sold off, and US yields rose as we anticipated, but this did little for the greenback, which fell against all the majors but the Japanese yen and New Zealand dollar. Although the US dollar fell to new six-month lows against the Canadian dollar and rose to three-week highs against the yen, it remained mostly …
Will Sideways Movement Alleviate the Overextended Greenback? Read More »
An exogenous shock disrupts relationships and patterns. It may be a useful reminder the correlation does not mean 100% co-movement. The strongest currency in the world last week was the Swiss franc, a safe-haven that rose by almost 0.5%. The weakest major currency, and third weakest overall, was the Japanese yen, also a leading safe-haven. …
The Rubber Band Snaps Back: Dollar Correction Begun Read More »
Overview: US stocks were not able to hold onto early gains yesterday, and this has helped set the stage for today’s heavier bias. Asia Pacific markets were narrowly mixed, with Japan and Korea eking out small gains while China and Taiwan slipped a little. Europe’s Dow Jones Stoxx 600 is threatening to snap a five-day advance …
Brexit Drama Continues but Fed Moves to Center Stage Read More »
Overview: Comments by US President Trump over the weekend, complaining about the dollar’s strength weighed on the greenback initially in Asia, but it quickly recovered. Reports of progress on a US-China trade deal helped lift the Shanghai Composite above the 3000-level for the first time since the middle of last year. Asian equities mostly rallied with …
Markets Shrug-Off Trump’s Attempt to Talk the Dollar Down Read More »
Overview: The rally in equities is threatening to pause today, even though the few markets open in Asia edged higher. Europe’s Dow Jones Stoxx 600, which has advanced in eight of the past ten sessions and six in a row, is seeing some profit-taking pressures. US shares are also trading heavier in Europe. The S&P 500 …
Overview: Activity in the global capital markets is subdued as investors move to the sidelines as the year-end approaches. The Federal Reserve headlines the holiday week that also features a Bank of England a Bank of Japan meeting. Only the Fed is expected to change rates. The dollar, which rose against most currencies last week, …
Sterling was the only major currency to have a worse week than the US dollar. Prime Minister May may have secured the wording for an agreement in principle with the EC and managed to get a majority of the cabinet to support it, but seems increasingly unlikely to pass the last hurdle, Parliament. US President …
Overview: It appears that month-end considerations deterred the dollar selling that the technical indicators warned was coming and as the new month starts, the dollar is offered. It is weaker against all the major currencies and most of the emerging market currencies. The two main developments include progress on the EU-UK Brexit negotiations that will …
The MSCI benchmark for developed and emerging market equities has fallen for the past five weeks. The dollar has done well over this period. Although it lost some momentum ahead of the weekend, the Dollar Index reached a two-month high at the end week, reflecting the two-month lows of the euro and sterling. The Australian …
The US dollar fell against most of the major currencies last week, the notable exception of the Japanese yen. The greenback has trended higher against the yen, bolstered by the rise in US rates and equity market gains, including last week’s 2.2% rally in the battered MSCI Emerging Markets Index. The pound managed to eke out …
Greenback’s Downside Correction is Over, or Nearly So Read More »