Tag Archive: #USD

Greenback Poised to Challenge May Highs

2022-06-13

by

2022-06-13

The firmer than expected US CPI did not change expectations that the Federal Reserve will hike the Fed funds target by 50 bp on June 15. What it did was boost the chances that the 50 bp steps will continue through at least November.

Read More »

Over to the ECB

2022-06-09

by

2022-06-09

Overview: Equity markets in Asia Pacific and Europe are weaker.  The main exception in Asia Pacific was India, where the market rose by about 0.75%. 

Read More »

The Greenback Bounces Back

2022-06-08

by

2022-06-08

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.

Read More »

Reserve Bank of Australia Surprises, but Aussie Struggles

2022-06-07

by

2022-06-07

Overview: The jump in US interest rates helped lift the greenback to new 20-year highs against the Japanese yen and pushed the euro back below $1.07. US equities saw initially strong gains pared and this set the tone for today’s activity.

Read More »

Greenback Looks Poised for Additional Gains

2022-06-05

by

2022-06-05

The divergent performances make it challenging to talk about the G10 currencies last week. The Canadian dollar led the advancing major currencies with a 1.2% gain last week.

Read More »

Moderating Labor Market is what the Fed Wants

2022-06-03

by

2022-06-03

Overview: For the large rally in US stocks yesterday and the sell-off in the dollar, US rates were surprisingly little changed. This set the tone for today's action, ahead of the US employment data. Asia Pacific equities moved higher and Europe’s Stoxx 600 has edged up to extend yesterday’s rise. The 10-year US Treasury yield is little changed, hovering around 2.91%. European benchmark yields are 1-3 bp higher.

Read More »

Dollar Gains Pared

2022-06-02

by

2022-06-02

Asia Pacific equities were mostly lower.  China and India bucked the trend.  Europe’s Stoxx 600 is steady with no follow through selling after yesterday reversal. US index futures are posting modest gains and are trying to snap a two-day drop. 

Read More »

Bank of Canada’s Turn

2022-06-01

by

2022-06-01

Overview: The recent equity rally is stalling. Asia Pacific equities were mixed, with Japan, South Korea, and Australia, among the major bourses posting gains. Europe’s Dow Jones Stoxx 500 is slipping lower for the second consecutive session, ending a four-day bounce. US equity futures are little changed.

Read More »

Macro and Prices: Sentiment Swings Between Inflation and Recession

2022-05-14

by

2022-05-14

(On vacation for the rest of the month.  Going to Portugal.  Commentary will resume on June 1.   Good luck to us all.) The market is a fickle mistress. The major central banks were judged to be behind the inflation curve.

Read More »

Sentiment Remains Fragile, and the Euro and Sterling can barely Sustain even Modest Upticks

2022-05-13

by

2022-05-13

Equities are recovering from dramatic losses.  Today, the Nikkei, Hang Seng, and Kospi surged by more than 2%. 

Read More »

Dollar and Yen Surge

2022-05-12

by

2022-05-12

Overview: Global equities are bleeding lower. Several large markets in the Asia Pacific region, including Hong Kong, Taiwan, and India are off more than 2%. Japan and Australian bourses fell by more than 1.5%.

Read More »

Greenback Softens Ahead of CPI

2022-05-11

by

2022-05-11

Overview: It appears that investors have become more concerned about growth prospects and less about inflation in recent days. The US 10-year yield that had flirted with 3.20% at the start of the week is now around 2.93%.

Read More »

No Rest for the Weary

2022-05-10

by

2022-05-10

Overview: Risk appetites are improving on the margin. Asia Pacific stocks still fell after the sharp losses on Wall Street on Monday. Still, China, Taiwan and Indian equities traded higher. Europe's Stoxx 600 is snapping a four-day 6.5%+ slide and is up around 1.2% in late European morning turnover.

Read More »

Fed Day

2022-05-04

by

2022-05-04

Overview: The markets are mostly treading water ahead of the FOMC decision later today. Tech stocks tumbled in Hong Kong and the Hang Seng fell a little more than 1%, while India was the worst performer in the region falling over 2% following an unexpected and intra-meeting hike by the Reserve Bank of India.

Read More »

RBA Surprises with a 25 bp Hike

2022-05-03

by

2022-05-03

Overview: The large bourses in Asia Pacific except Hong Kong eased.  Japan and China's mainland markets are closed for the holiday.  Europe's Stoxx 600 is up about 0.6%.  It gapped lower yesterday and has not entered the gap today.  US futures are a little softer. 

Read More »

The Euro Continues to Stuggle to Sustain Even Modest Upticks, but Specs Still Long in the Futures

2022-05-02

by

2022-05-02

Overview: The US dollar begins the new week on a firm note ahead of the mid-week conclusion of the FOMC meeting.  Many centers are closed for the May Day holiday, making for thinner market conditions.  Equities are mostly lower in the markets that traded today.  This includes Japan, South Korea, Australia, and India in the Asia Pacific. 

Read More »

Did China’s Politburo Throw Markets a Lifeline?

2022-04-29

by

2022-04-29

Overview: Speculation that a midday statement by China's Politburo signals new efforts to support the economy ahead of  next week's holiday appears to have stirred the animal spirits. 

Read More »

China’s Covid Sends Commodities Lower and helps the Dollar Extend Gains

2022-04-25

by

2022-04-25

Overview:  Fears that the Chinese lockdowns to fight Covid, which have extended for four weeks in Shanghai, are not working, and may be extended to Beijing has whacked equity markets, arrested the increase in bond yields, and lifted the dollar. 

Read More »

The Yen Bounces after 13-Day Slide and BOJ Defends Yield Cap

2022-04-20

by

2022-04-20

Overview: The record-long yen slide has stalled just shy of JPY129.50, even though the Bank of Japan defended its Yield-Curve Control cap on the 10-year bond and will continue to do so for the next four sessions. The greenback fell to almost JPY128 before steadying.  China again defied expectations for lower rates (loan prime rate), the yuan's sell-off accelerated and slide to its lowest level since last October.

Read More »

Yen Blues

2022-04-19

by

2022-04-19

Benchmark 10-year bonds yields in the US and Europe are at new highs for the year.  The US yield is approaching 2.90%, while European rates are mostly 5-8 bp higher.  The 10-year UK Gilt yield is up nine basis points to push near 1.98%. The higher yields are seeing the yen's losing streak extend, and the greenback has jumped 1% to around JPY128.45  The dollar is trading lower against the other major currencies but the Swiss franc.

Read More »