Category Archive: 4.) Marc to Market

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FX Daily, November 17: Greenback Remains Under Pressure

2020-11-17

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2020-11-17

Overview: Moderna's announcement did not spur nearly the magnitude of the disruption caused by Pfizer's similar announcement a week ago.  Still, in the US, the NASDAQ underperformed the other indices, and the US Dow Industrials saw record highs.

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FX Daily, November 16: Risk-On Despite Surging Pandemic

2020-11-16

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2020-11-16

EUR/CHF and USD/CHF, November 16
Despite the surging pandemic and new restriction measure, risk-appetites appear strong to start the week. Led by 2% gains in the Nikkei and Taiwan's Taiex, all of the Asia Pacific region's equity markets advanced. European markets have followed suit and the Dow Jones Stoxx 600 is knocking on last week's eight-month high.

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FX Daily, November 13: Greenback Pares this Week’s Gains while the Turkish Lira Continues to Squeeze Higher

2020-11-13

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2020-11-13

Overview: The largest bourses in the Asia Pacific region followed the US equity market lower, with the Nikkei posting its first loss in nine sessions. China, Hong Kong, and Australia moved lower as well. On the week, the MSCI Asia Pacific Index gained about 1% after rising 6.3% in the prior week.

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FX Daily, November 12: Nervous Calm in the Capital Markets

2020-11-12

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2020-11-12

There is a nervous calm in the capital markets today.  The equity rally in the Asia Pacific region stalled to end an eight-day rally, though the Nikkei's rally remains intact. 

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FX Daily, November 11: Reduced Risk of Negative Policy Rates Lifts Sterling and the Kiwi

2020-11-11

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2020-11-11

Overview:  Investors are trying to figure out the impact of the likelihood of a vaccine. One thing that has happened is that the market perceives less chance that the UK or New Zealand will adopt negative rates, and their respective currencies are adjusting higher.  Meanwhile, the equity rally is continuing in Asia and Europe.

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FX Daily, November 10: Markets Remain Unsettled

2020-11-10

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2020-11-10

Overview: Pfizer's vaccine announcement eclipsed the US election as the key market driver. It spurred the unwinding of Covid trades in terms of sectors and yields.  Emerging market currencies and the majors that benefit from world growth outperformed the perceived safe-havens, like the yen and the Swiss franc.

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FX Daily, November 9: Markets are not Waiting for Official Closure in the US

2020-11-09

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2020-11-09

The new week has begun with robust risk appetites, driving stocks and stocks higher and sending the dollar broadly lower.  Nearly all the equity markets in the Asia Pacific region gained more than 1%, except Malaysia and Indonesia. 

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FX Daily, November 6: A Pause that Refreshens?

2020-11-06

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2020-11-06

Investors have piled into risk assets this week, seemingly undeterred by the US elections' lack of a clear outcome. The coronavirus is still surging, and a new complication has emerged. A mutation of the virus, originating in minks (Denmark), could pose a challenge in developing a vaccine. MSCI Asia Pacific Index rose for the fifth consecutive session today to end its best week since April.

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FX Daily, November 5: The Dollar Slides and the Yuan Jumps

2020-11-05

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2020-11-05

Overview: The markets did not wait for the final vote count and took stocks and bonds higher while pushing the greenback lower. While it appears Biden will be the next US President, investors seemed to like the fact that his agenda will be checked by a Senate that may remain in Republican hands.  Stocks are on a tear. 

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FX Daily, November 4: Indecision Keeps Investors on Edge, but the Dollar Rides High

2020-11-04

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2020-11-04

Initially, the markets built on Tuesday's price action, but as soon as a few counties in Florida indicated that it was not going to be the "blue wave," risk came off, and it was most evident in the bond and currency markets. Equities rallied in the Asia Pacific area, and all but Hong Kong, Australia, and Indonesia advanced. 

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FX Daily, November 3: Risk Appetites Return as the US Goes to the Polls

2020-11-03

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2020-11-03

More than 95 mln Americans voted before today, and many observers warn of a cliffhanger that could be decided in the courts. The polls sand surveys show strong odds in favor of a Democratic sweep. Looking at the capital markets, nothing looks amiss. 

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FX Daily, October 30: Investors Scared Before Halloween

2020-10-30

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2020-10-30

EUR/CHF and USD/CHF, October 30
Investors punished US tech giants for not delivering perfection as prices apparently had discounted, and the subsequent sell-off coupled with month-end dynamics has rocked global equities.  Asia Pacific bourses were a sea of red, led by a 2.5% decline in the tech-heavy South Korean Kospi, but most major markets were off more than 1%. 

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FX Daily. October 29: Markets Continue to Struggle

2020-10-29

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2020-10-29

The spreading virus that is shutting down large parts of Europe, while the US is reluctant to return to lockdowns and refuses to have a nationwide requirement for masks in public hit risk assets yesterday.  The S&P posted its largest decline in four-months yesterday (~3.5%), and the selling carried into the Asia Pacific region.

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Introducing the Bannockburn World Currency Index

2020-10-29

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2020-10-29

The Dollar Index is a popular way to think about and trade "the dollar."  However, it has become less relevant as a reflection of the dollar's performance or representative of trade, capital flows, market capitalization. 

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FX Daily, October 28: Animal Spirits Called in Sick

2020-10-28

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2020-10-28

Sickened by the surging virus, animal spirits are bed-ridden today. Several European countries are experiencing the most fatalities and illnesses in several months, and policymakers are responded with national restrictions.

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FX Daily, October 27: Markets Take Collective Breath and Beijing Tweaks Fixing Mechanism

2020-10-27

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2020-10-27

The surging pandemic sapped the risk-taking appetites as some investors hunker down for what could be a volatile period ahead.  The S&P 500 lost nearly 3% at its lows before rebounding 1% in late dealings.

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FX Daily, October 26: Troubling Start of the Important Week

2020-10-26

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2020-10-26

The surging virus ravaging large parts of Europe and the United States is fanning concerns over the economic implications as new social restrictions and curfews are announced in several countries. US additional fiscal support remains elusive as aid for states and local governments remains a bone of contention. 

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FX Daily, October 23: Disappointing PMIs may Sharpen ECB’s Dovishness but the Euro Remains Firm

2020-10-23

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2020-10-23

The US dollar is finishing the week on a soft note, falling against all the major currencies. On the week, it is off by at least one percent against most of them, with the Australian and Canadian dollars and Japanese yen, laggards, rising 0.5%-0.75%. 

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FX Daily, October 22: Greenback Stabilizes

2020-10-22

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2020-10-22

Two sets of talks have riveted attention, and both appeared to have made progress yesterday. After some words, the EC, recognizing the importance of UK sovereignty, UK Prime Minister Johnson signaled a resumption of trade talks.

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Is China’s Renminbi About to Dethrone the U.S. Dollar As The World’s Dominant Currency?

2020-10-22

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Join Marc Chandler, Managing Director, Bannockburn Global Forex and Sarwar Kashmeri as they explore the impact on the U.S. of the rise of China's bond market and equity markets, the rapid appreciation of the Renminbi, and China's emergence from COVID-19 with a stunning 4.9% economic growth in the third quarter as the US and EU economies continue to drift.

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