Tag Archive: South Korea

Dollar Starts the Week Bid ahead of the FOMC

2021-12-13

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2021-12-13

Overview: Equities, bonds, and the dollar begin the new week on a firm note.  Japanese, Chinese, Australian, and New Zealand equities advanced in the Asia Pacific region.  Europe's Stoxx 600 is snapping a three-day decline, and US futures are 0.25%-0.35% higher.  The US 10-year yield is a little softer at 1.48%. European benchmark yields are mostly 1-2 bp lower, and near 0.71%, the UK Gilt's yield is at a three-month low.  The dollar is rising...

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FX Daily, December 02: Calm Surface Masks Lack of Conviction

2021-12-02

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2021-12-02

The downside reversal in US stocks yesterday seemed to accelerate after the first case of the Omicron variant was found in the US.  In itself, it should not be surprising, but perhaps, what was especially disheartening is that the person had been fully vaccinated. 

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Fragile Calm Returns and Powell’s Anti-Inflation Rhetoric Ratchets Up

2021-12-01

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2021-12-01

Overview:  Into the uncertainty over the implications of Omicron, the Federal Reserve Chairman injected a particularly hawkish signal into the mix in his testimony before the Senate.  These are the two forces that are shaping market developments.  Travel restrictions are being tightened, though the new variant is being found in more countries, and it appears to be like closing the proverbial barn door after the horses have bolted. Equities are...

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Covid Strikes Back

2021-11-26

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2021-11-26

Overview: Concerns that a new mutation of the Covid virus has shaken the capital markets.  Equities are off hard, and bonds have rallied.  In the foreign exchange market, the Japanese yen and Swiss franc have rallied.  While there may be a safe haven bid, there also appears to be an unwinding of positions that require the buying back of the funding currencies, which is also lifting the euro.  The currencies levered from growth, the dollar-bloc and...

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Strong Earnings and Easing of (Some) Political Tensions Bolster Sentiment

2021-10-26

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2021-10-26

Overview:  Helped by new record highs in the S&P 500 and Dow Industrials, constructive earnings, and an easing of political tensions, risk appetites are robust today.  The MSCI Asia Pacific Index recouped yesterday's losses plus more as the large equity markets in the region, but China and Hong Kong rose, led by a more than 1% gain in Tokyo.  European shares are rallying, and the Stoxx 600 is posting gains for the ninth session in the last 11...

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Dollar Rallies as Energy Surge Quashes Animal Spirits

2021-10-06

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2021-10-06

Overview: Investors worry that surging energy prices will sap economic activity and boost prices.  It is sparking a sharp drop in equities and bonds while lifting the dollar.  The Nikkei fell for the eighth consecutive session, and today's 1% drop brings the cumulative decline to 9%.  South Korea's Kospi also fell by more than 1%. 

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FX Daily, September 15: China Disappoints, but the Yuan Remains Strong

2021-09-15

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2021-09-15

The sixth decline of the S&P 500 in the past seven sessions set a negative tone for equity trading in the Asia Pacific region, and the poor Chinese data did not help matters.  News that China's troubled Evergrande would miss next week's interest payment weighed on sentiment too.

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Greenback Softens amid Stronger Risk Appetites to Start August

2021-08-02

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2021-08-02

Overview: Risk appetites snap back after easing in the waning hours last month. The MSCI Asia Pacific equities jumped back after dropping 1.8% last week for the second week in a row. Japan's Topix and China's CSI 300 rose by more than 2%, and Hong Kong, Taiwan, and Australia gained more than 1%. 

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FX Daily, July 21: Did Japan Deliver a Fait Accompli to the US?

2021-07-21

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2021-07-21

Overview:  The biggest rally in US equities in four months has helped stabilize global shares today.  In the Asia Pacific region, Japan, China, and Australian markets advanced.  Led by information technology and consumer discretionary sectors, Europe's Dow Jones Stoxx 600 is up around 1.35% near the middle of the session. 

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FX Daily, July 02: US Jobs and OPEC+ Day

2021-07-02

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2021-07-02

The US jobs report and OPEC+ decision are awaited. The dollar remains bid.  Only the yen and Canadian dollar are showing a hint of resilience, though, on the week, the Scandis and dollar-bloc currencies are off between around 1-2%. The greenback is also firmer against the emerging market currency complex, and the JP Morgan index is off for the sixth consecutive session.

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FX Daily, June 24: Did the PBOC Signal it is Content with the Yuan’s Pullback?

2021-06-24

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2021-06-24

The US dollar is trading slightly lower against most of the major and emerging market currencies. The Scandis are leading the major currencies, while the Russian ruble leads the central and eastern European currencies higher. Emerging market currencies mostly firmer, though the Turkish lira and South African rand are notable exceptions.

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FX Daily, June 21: Dollar Surge Stalls

2021-06-21

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2021-06-21

Pressure on equities seen last week carried over into Asia and Europe today. The MSCI Asia Pacific Index fell for the fourth consecutive session, led by more than a 3% decline in the Nikkei. Australia, Taiwan, and Hong Kong bourses fell by more than 1%. European equities opened lower, but have turned higher.

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FX Daily, June 01: CNY Softens after PBOC’s Move; Equities Advance on Stronger World Outlook

2021-06-01

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2021-06-01

The US dollar fell against most major currencies following the PBOC's modest move to reduce the upward pressure on the yuan. Follow-through selling was seen earlier today, and sterling reached a new three-year high. However, the dollar found a bid in the European morning, while the Scandi currencies held on to most of their earlier gains.

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FX Daily, May 27: Narrow Ranges in FX Prevail Amid Month-End Considerations

2021-05-27

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2021-05-27

Dollar demand linked to the month-end gave the greenback a bit of a reprieve, helped by firmer bond yields. Some momentum players may have been forced out of the euro and yen when the $1.22 and JPY109 levels yielded. However, follow-through dollar buying has been limited, and it has come back a little softer but broadly so.

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FX Daily, April 27: Markets Mark Time Ahead of Fed

2021-04-27

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2021-04-27

Short-covering ahead of the FOMC's outcome tomorrow appears to be lending the US dollar support today. It has extended yesterday's gains against the euro, sterling, and yen.  Among emerging market currencies, the Turkish lira, along with the South Korean won and Taiwanese dollar, lead the few advancers.

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FX Daily, January 29: Please Stay Seated, the Ride is not Over

2021-01-29

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2021-01-29

Powerful corrective forces continue to grip the market. After a large rally to start the New Year, the correction is punishing. Most Asia Pacific equities markets were off again today to bring the week's loss to 2.5% to 5.5% throughout the region. Europe's Dow Jones Stoxx 600 is a little more than 1% lower on the day. 

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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, December 11: Brexit Fears Weigh on Sterling

2020-12-11

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2020-12-11

Overview:  The odds of a UK-EU agreement and new stimulus before year-end in the US have faded and are sapping risk appetites ahead of the weekend.  Although most Asia Pacific equity markets gained, China and Australia were notable exceptions, European shares are heavy, and the Dow Jones Stoxx 600 is near three-week lows. 

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FX Daily, November 23: Markets Look Past Near-Term Challenges

2020-11-23

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2020-11-23

Overview:  News that the AstraZeneca vaccine was 70% effective but could be enhanced by changing dosage is lifting spirits and boosting equities.  Japan's markets were closed for a national holiday, but all the equity markets in the region advanced and many by more than 1%. 

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FX Daily, November 18: Balancing Pandemic Surge with Optimism about Vaccine

2020-11-18

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2020-11-18

News that Tokyo will go to its highest alert as it faces a rising contagion snapped a 12-day rally in the Nikkei, but most bourses in the Asia Pacific region excluding Japan advanced, though Chinese equities were mixed. European equities are narrowly mixed as the Dow Jones Stoxx 600 continues to gyrate within Monday's range.

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