Tag Archive: Chile

The Yen and Yuan Continue to Weaken

While the US dollar appears to be consolidating its recent gains, the Japanese yen and Chinese yuan remain under pressure. Officials seem more concerned about the pace of the move than the level it has reached. New and large fiscal initiatives that the new UK government has floated has failed to change sentiment toward sterling, which is the second weakest major currency today after the Japanese yen.

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What Happened Monday

The US and Canada may have been on holiday on September 5, but the world waits for no one and there were several significant developments. First, Gazprom's decision to indefinitely suspend gas shipments through the Nord Stream 1 pipeline announced before the weekend saw the European natgas benchmark soar 23.7.

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Euro Parity Holds ahead of US CPI

Overview: The US dollar is consolidating with a slight downside bias ahead of the June CPI report. The euro held above $1.00 but is still pinned in the trough. The rate hike by the Reserve Bank of New Zealand failed to have much impact.

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The Greenback Bounces Back

Overview: After modest US equity gains yesterday, the weaker yen and Beijing’s approval of 60 new video games helped lift most of the large markets in the Asia Pacific region.

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Calmer Markets: Hope Springs Eternal

Overview:  Interest rates continue to rise, but equities are looking through it today and the dollar is drawing less succor.  Asia Pacific equities were mostly higher.  With half of Shanghai in lockdown, Chinese equities were unable to join the regional advance.  Europe's Stoxx 600, led by energy and consumer discretionary sectors, is rising for the third consecutive sessions. US futures have a small upward bias. 

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FX Daily, January 26: Federal Reserve and Bank of Canada Meet as Risk Appetites Stabilize

After a slow and mixed start in Asia, where Australia and India are on holiday, equity markets have turned higher.  Europe's Stoxx 600 is up around 1.9% near midday in Europe, which if sustained would be the biggest gain of the year.  US futures are snapping backing too, with the S&P 500 popping more than  1% and NASDAQ by 2%. 

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No Turnaround Tuesday for Equities?

Overview:  Activity in the capital markets is subdued today, ahead of tomorrow's FOMC meeting conclusion and the ECB meeting on Thursday.  The MSCI Asia Pacific equity index fell for the third consecutive session.  European bourses are heavy after the Stoxx 600 posted an outside down day yesterday. Today would be the fifth consecutive decline. Selling pressure on the US futures indices continues after yesterday's losses.  Australia and New Zealand...

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Central Bank Fest

Next week is the last big week of the year, and what a week it will be:  Five major central banks meet and at least nine from emerging market countries.  Norway's Norges Bank is the most likely major central bank to hike its key (deposit) rate (December 16).  It would be the second hike of the year.  The economy is enjoying a solid recovery, and headline inflation rose to 4.6% in November, its fastest pace since 2008.  The underlying rate, which...

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FX Daily, October 11: Rate Expectation Adjustment Continues

Overview:  Equities are softer and yields higher to start the new week.  The dollar is mixed.  Oil and industrial metals are higher. There are several developments over the weekend, but the focus seems to be on central bank action, inflation reports by the US and China, and the start of the Q3 earnings season. 

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FX Daily, July 15: Strong Gains in US CPI and PPI Don’t Stop the Bond Market Rally

Strong inflation prints this week have not prevented the long-term US interest rates from tumbling. The 10-year yield is about 10 bp lower than where it closed on Tuesday after the lackluster 30-year auction. The 30-year yield itself is 11 bp lower.

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FX Daily, July 14: RBNZ Moves Ahead of the Queue, Will the Bank of Canada Maintain its Place?

The Reserve Bank of New Zealand jumped to the front of the queue of central banks adjusting monetary policy by announcing the end of its long-term asset purchases. New Zealand's s 10-year benchmark yield jumped seven basis points, and the Kiwi is up almost 1%, to lead the move against the greenback today.

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FX Daily, July 13: Headline US CPI may Decline for the First Time in a Year

New record highs in the US S&P 500 and NASDAQ coupled with China allowing Tencent to acquire a search engine helped lift Asia Pacific equities. It is the first back-to-back by MSCI's regional index for more than two weeks. Australia's market was a notable exception.

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FX Daily, July 12: Markets Adrift ahead of Key Events

The new week has begun quietly. The dollar is drifting a little higher against most major currencies, with the Scandis and dollar-bloc currencies the heaviest. The yen and Swiss franc's resilience seen last week is carrying over.

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FX Daily, December 5: Sterling Sent Higher as Market Discounts Next Week’s Election

Overview: Global equity markets have resumed their climb after a wobble at the end of last week and earlier this week. A strong recovery in the S&P 500 on Tuesday signaled yesterday's strong advance that left a bullish one-day island low in its wake. MSCI Asia Pacific Index snapped a two-day decline today with nearly all the market with the notable exception of South Korea advanced.

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FX Daily, December 2: PMIs Provide Latest Fuel for Equity Markets

Mostly better than expected manufacturing PMI readings for December, including in China, is providing the latest incentive for equity market bulls. Led by the Nikkei, which was aided by a weaker yen major equity markets in Asia Pacific rallied and recouped most of the nearly 1% loss before the weekend. Europe's Dow Jones Stoxx 600 is also shrugging off the pre-weekend loss and to challenge the multiyear high recorded last week.

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FX Daily, November 29: Equities Slip While Investors Mark Time

Overview: Global equities are trading heavily. Both the MSCI Asia Pacific and the Dow Jones Stoxx 600 snapped four-day advancing streaks yesterday and have seen some follow-through selling today. In the Asia Pacific region, all the markets fell but Jakarta. Hong Kong's Hang Seng slipped a little more than 0.2% yesterday but dropped 2% earlier today to record its biggest decline in three weeks.

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FX Daily, October 23: Markets Lack Much Conviction, Await Fresh Developments

Overview: UK Prime Minister Johnson is neither dead in a ditch as he said he would prefer to be than request an extension of Brexit, nor will the UK leave the EU at the end of the month. Yesterday's vote rejected the attempt to fast-track the legislation needed to support the divorce agreement. It all but ensures that such a delay will be forthcoming.

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FX Daily, October 22: Trudeau will Lead a Coalition Government in Canada, while the UK’s Johnson Fights Another Day

Overview: Bismark is said to have warned that laws were like sausages, and to respect them, one ought not to see how they are made. The UK had a non-binding referendum more than three years ago, and although it won by 52%-48% and the party leaders committed to adhering to the results, it still cannot figure out how to leave.

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FX Daily, September 04: HK Concession and Better EMU PMI Overshadows Self-Inflicted Trade and Brexit Woes

Risk appetites have been bolstered by three developments. The UK appears to have taken a tentative step away from leaving the EU without a deal. Hong Kong's Chief Executive Lam has agreed to formally withdraw the controversial extradition measure that had been suspended.

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Emerging Market Week Ahead Preview

EM FX ended last week on a firm note, but weakness resumed Monday. Higher than expected Turkish inflation hurt the lira, which in turn dragged down BRL, ARS, ZAR, and RUB. We expect EM to remain under pressure this week when the US returns from holiday Tuesday.

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