Tag Archive: Brazil

FX Daily, January 26: Subdued Activity as New Incentives Awaited

2021-01-26

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2021-01-26

Overview:  After rallying strongly to start the year, Asia Pacific equities, led by the high-flying Hang Seng, sold-off, led by Tencent.  Most markets in the region were off at least 1%.  Australia and India escaped the profit-taking due to holidays.  Europe's Dow Jones Stoxx 600 is faring better and looks poised to snap a two-day fall, led by materials, financials, information technology, and consumer staples.

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FX Daily, January 19: Even When She Speaks Softly, She’s Yellen

2021-01-19

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2021-01-19

Overview: The animal spirits are on the march today.  Equities are mostly higher, peripheral European bonds are firm, and the dollar is mostly softer. After posting the first back-to-back decline this year, the MSCI Asia Pacific Index bounced back today, led by a 2.7% gain in Hong Kong (20-month high) and a 2.6% rise in South Korea's Kospi. 

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FX Daily, December 15: The Bulls are Emboldened

2020-12-15

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2020-12-15

The S&P fell for the fourth consecutive session yesterday, the longest losing streak of the quarter, and this seemed to encourage profit-taking in the Asia Pacific region today.  The MSCI Asia Pacific Index slipped for the second consecutive session, and even confirmation of the Chinese recovery failed to lift the Shanghai Composite. 

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FX Daily, December 9: Hope Burns Eternal

2020-12-09

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2020-12-09

The market is hopeful today. The Johnson-von der Leyen dinner is seen as evidence that both sides see one more opportunity, and sterling is among the strongest currencies today. Hopes of a $900 bln+ fiscal stimulus package in the US helped stir animal spirits and lift US stocks to record highs yesterday.

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FX Daily, November 30: Equities are Heavy and the Dollar Softer to Start New Week

2020-11-30

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2020-11-30

Overview: Month-end profit-taking saw Asia Pacific shares tumble earlier today.  Most markets are off 1-2.5% today after the MSCI Asia Pacific Index rose 2.25% last week.  European shares are mixed, but little changed.  US shares are also trading lower. 

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FX Daily, November 24: Diverging PMIs Fail to Give the Dollar Lasting Support

2020-11-24

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2020-11-24

Overview: The contrast between the eurozone and US preliminary PMI readings caught the short-term market leaning the wrong way, and the dollar snapped back after extending its recent losses.  However, today the US dollar is back on its heels and returning to yesterday's lows against most major currencies.

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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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Why Aren’t Bond Yields Flyin’ Upward? Bidin’ Bond Time Trumps Jay

2020-10-02

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2020-10-02

It’s always something. There’s forever some mystery factor standing in the way. On the topic of inflation, for years it was one “transitory” issue after another. The media, on behalf of the central bankers it holds up as a technocratic ideal, would report these at face value. The more obvious explanation, the argument with all the evidence, just couldn’t be true otherwise it’d collapse the technocracy right down to the ground.And so it was also in...

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FX Daily, September 17: Powell Lets Steam Out of Equities and Spurs Dollar Short-Covering

2020-09-17

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2020-09-17

Profit-taking after the FOMC meeting saw US equities and gold sell-off. The high degree of uncertainty without fresh stimulus did not win investors' confidence. The Fed signaled rates would likely not be hiked for the next three years, and without additional measures, that appears to be the essence of the switch to an average inflation target.

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FX Daily, September 3: Corrective Forces Maintain Grip

2020-09-03

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2020-09-03

The US dollar is continuing to recover after hitting new lows earlier in the week. It is lower against all the major currencies and most of the emerging markets. A report in the Financial Times suggesting that there is a concern about the euro's recent strength at the ECB has added a bit more fuel to the move, and the euro, which had pushed above $1.20 earlier in the week, briefly traded below $1.18. 

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FX Daily, August 31: Month-End Gyrations and the Fed’s Ad Hocery

2020-08-31

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2020-08-31

Markets are searching for direction at month-end. Asia Pacific shares outside of Japan lower. Berkshire Hathaway confirmed taking a $6 bln stake in Japanese trading companies over the past year, and the pullback in the yen helped lift shares.  The MSCI Asia Pacific Index rose 2% last week. 

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FX Daily, August 18: Canada Shrugs Off Loss of Morneau and Gold Reclaims $2000 Threshold

2020-08-18

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2020-08-18

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 among the G10.

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FX Daily, August 11: Gold and the Dollar are Sold while Stocks March Higher

2020-08-11

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2020-08-11

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. 

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FX Daily, August 06: Markets Consolidate

2020-08-06

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2020-08-06

EUR/BGN Currency Pair
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.

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FX Daily, August 5: Corrective Pressures in the FX Market Prove Short-Lived

2020-08-05

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2020-08-05

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. 

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FX Daily, July 23: Powerful Momentum is Still Evident in the Foreign Exchange Market

2020-07-23

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2020-07-23

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.

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FX Daily, July 14: Turn Around Tuesday Began Yesterday

2020-07-14

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2020-07-14

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 fell, led by declines in Hong Kong and India.

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FX Daily, July 1: Second Verse Can’t be Worse than the First, Can it?

2020-07-01

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2020-07-01

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 Pacific region rose.  The MSCI Asia Pacific Index rose almost 15.5% in Q2. 

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FX Daily, May 18: Yuan Slumps as US-Chinese Tensions Rise

2020-05-18

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2020-05-18

Overview: Despite somber warnings that the US economic recovery can stretch to the end of next year, investors have begun the new week by taking on new risks. Most equity markets in the Asia Pacific region rose, with Australia leading the large bourses with a 1% gain. India was an outlier, suffering a 2.4% loss, and Taiwan's semiconductor sector was hit, and the Taiex fell 0.6%.

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