Reports that the Fed’s Brainard was interviewed for the Chair helped soften yields a bit, not that they needed extra pressure, on ideas she is more dovish than Powell. In turn, the lower yields saw...
Three main forces are shaping the business and investment climate: Surging energy prices, a dramatic backing up of short-term interest rates in Anglo-American countries, and the persistence of supply chain disruptions. The US and Europe...
Interest rates, ostensibly the fuel behind the dollar’s surge, pulled back a little in the US yesterday. However, the greenback’s rally continued, lifting it to new highs for the year against sterling, the euro, and...
The week is winding down and risk-appetites seem vulnerable even though the MSCI Asia Pacific Index pared its first weekly loss in four, led by gains in Tokyo and Hong Kong. With those gains, Japanese...
Federal Reserve Chairman Powell’s long-anticipated speech at Jackson Hole provided fireworks but not quite what the market had expected. Confirmation of tapering was supposed to lift US rates and the dollar. Instead, the opposite took...
Neither the chaos and tragedy unfolding in Afghanistan nor the US refusal to acquiesce to the allies’ request to extend the August 31 deadline seems to have much impact on the global capital markets. Instead,...
Profit-taking on long dollar positions was seen ahead of the weekend. The yield on the December 2022 Eurodollar futures slipped to finish unchanged on the week that saw CPI and PPI reports. The preliminary University of...
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...
A possible deal in OPEC saw a sharp drop in crude oil prices, and there is some follow-through selling today. European yields are lower, though hawkish comments are weighing on UK Gilt prices. Australia’s jobs...
The greenback had a tough week. It fell against most currencies. Our GDP-weighted currency index snapped a three-week drop, which ended an eight-week advance. The combination of a seemingly more hawkish Federal Reserve and position...
Firming long-term US yields have lent the dollar support after trading heavily yesterday. The greenback is around 0.15%-0.50% higher against the major currencies. The Japanese yen and Canadian dollar are among the more resilient, and...
The short squeeze that lifted the US dollar ahead of the weekend has seen limited follow-through buying, and instead a consolidative tone emerged. Europe is searching for direction and perhaps waiting for US leadership after...
