Tag Archive: Sweden

Careful about Chasing the Dollar Lower in North America Today

The bout of profit-taking on long dollar positions begun last week has carried into the start of this week. Despite the escalating rhetoric, the yen is not participating today and is trading within the pre-weekend ranges. The greenback’s lows have been set in the European morning and have stretched the intraday momentum indicators, suggesting that North American dealers may not follow suit.

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Stocks and Bonds Sell Off, while the Dollar Rallies

Overview: The reverberations from last week continue to roil the capital markets today. Equities and bonds have been sold and the greenback bought. Most of the large markets in Asia Pacific fell by more 2%, including Japan’s Nikkei, Taiwan’s Taiex, and South Korea’s Kospi.

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The End Game Approaches

The pendulum of market sentiment swings dramatically.  It has swung from nearly everyone and their sister complaining that the Federal Reserve was lagging behind the surge in prices to fear of a recession.

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Johnson’s Ability to Lead Tories into Victory at Risk with Today’s By-Elections

Overview: Asia Pacific equities were mixed. Gains were recorded in China, Hong Kong, Australia, and India, among the large markets, while Japan was mostly flat and South Korea and Taiwan shares fell.

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Is it Really all about US CPI?

Overview:  The markets are in a wait-and-see mode, it appears, ahead of the US CPI figures, as it absorbs bond supply from Europe and monitors the potential restructuring of China's Evergrande.  A new storm may hit US oil and gas in the Gulf before recovering from the past storm and helping to underpin prices.

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FX Daily, July 08: Capital Markets Remain Unhinged

The dramatic move in the capital markets continues. The US dollar is soaring as yields and equities slide. The US 10-year yield has fallen below 1.30 to 1.26%  European benchmark yields are 1-4 bp lower, while Australia and New Zealand have seen a 7-9 bp drop today.

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FX Daily, July 07: Dollar Stabilizes at Elevated Levels After Surging Yesterday

The dollar has steadied after surging yesterday and has so far retained the lion's share of its gains, though it remains lower against most major currencies today. The dollar-bloc and Norwegian krone are the best performers while the yen is underperforming.

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FX Daily, July 01: The Greenback is Bid to Start the Second Half

Soft Asian manufacturing PMIs weighed on local shares after the S&P 500 set new record highs yesterday. European shares are recouping yesterday's month-end losses, while US futures indices are bid. The US 10-year yield is around 1.47%, and European yields are 1-2 bp higher. 

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FX Daily, June 29: Fear that the Mutating Virus Could Slow Recoveries Takes a Toll on Risk Appetites Ahead of Quarter-End

Fear that the new mutation of the covid virus will slow the global recovery has sent ripples across the global capital markets. The foreign exchange market has the clearest reaction, and the dollar is bid.

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FX Daily, June 21: Dollar Surge Stalls

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, May 12: The Dollar Stabilizes but Stocks, Not So Much

The markets remain on edge. Asia Pacific and US equities have yet to find stable footing, and inflation fears are elevated. The foreign exchange market has turned quiet as the dollar consolidates its recent losses.

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FX Daily, March 15: Big Week Begins Quietly

The capital markets are beginning a new and busy week in a non-committal fashion.  Equities are mixed.  Except for Japan, Hong Kong, and Australia, most markets in the Asia Pacific region were lower, led Chinese and Indian shares. 

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

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, November 27: Dollar Offered Ahead of the Weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy.   In the Asia Pacific, only Australia and India did not end the week on a firm note.  The MSCI Asia Pacific completed its fourth consecutive weekly gain, for around a 13% gain. 

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FX Daily, April 15: Dollar Rises as Equities Slump

Overview:  The recovery in equities stalled, and the risk-off mood has helped lift the US dollar, which had been trending lower. Taiwan and Malaysia were notable exceptions in the Asia Pacific regions to the heavier equity tone. The Nikkei gave back almost 0.5% after surging more than 3% on Tuesday. Europe's Dow Jones Stoxx 600 is ending a five-day rally. 

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FX Weekly Preview: Economic Data in the Holiday-Shortened Week

The capital markets will turn increasingly quiet in the week ahead as the Christmas holiday thins participation. If this is the season of goodwill, investors are lapping it up.  Global equity markets are finishing a strong year on a high note.  Record highs were recorded in the S&P 500 and the Dow Jones Stoxx 600.  The MSCI Emerging Markets equity index is at its best level since August 2018. 

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FX Daily, November 5: Animal Spirits Remain Animated

The prospects that the US-China deal could include some rolling back of existing US tariffs helped underpin risk appetites. After new record highs in the US S&P 500 and NASDAQ, Asia Pacific markets marched higher, and the MSCI Asia Pacific reached its highest level since August 2018. A small rate cut by China and catch-up by Tokyo, which was on holiday on Monday, helped extended the regional rally for the 14th session in the past 17.

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FX Daily, October 24: Flash PMIs Disappoint Despite Negative Interest Rates

Overview: As the UK awaits the EU's decision on its request, disappointing flash PMI readings Japan, Australia, and Germany have filled the news vacuum. Sweden's Riksbank retained a hawkish tone while keeping rates on hold, and Norway's Norges Bank also stood pat. The market expects Turkey to deliver a rate cut, while the ECB meeting is Draghi's last at the helm.

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FX Daily, September 10: Turn Around Tuesday

Overview: The momentum from the end of last week carried into yesterday's activity, but the momentum began fading.  Today, equities were mixed in Asia Pacific and weaker in Europe. The Dow Jones Stoxx 600 reversed lower yesterday and is slipped further today.  The S&P 500 may gap lower at the open.

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FX Weekly Preview: Talking and Fighting in the Week Ahead

Equity markets and the US dollar closed last week and August on a firm note. Ahead of the weekend, the dollar rose to new highs for the year against the euro, Swedish krona, Norwegian krone, and the New Zealand dollar. While the next set of US and Chinese tariffs start September 1, the market is making the most of the lull.

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