The market put more weight on the rise in the US ISM manufacturing survey than the downward revision to the manufacturing PMI and the unexpected back-to-back decline in construction spending. US rates shot up and...
The US dollar is surging today against most of the G10 currencies, and although the intraday momentum is stretched ahead of start of the North American session, there may be little incentive to resist before...
We have put emphasis on today’s US retail sales report. A recovery from the weather-induced weakness in January should underscore the resilience of US demand after another 200k jobs were created and personal income jumped...
After a strong showing yesterday, the dollar was sold in Asia and Europe. China announced a cut in reserve requirements and took more informal action to support the stock market, which encouraged risk-taking. Yet, the...
Ahead of Taiwan’s election, economic concerns are driving voters to the polls more than tensions with China. With a downturn in industrial production and an aging population, Taiwan needs a new economic model. Taiwan’s economy,...
The US dollar is mixed today. The dollar-bloc currencies are firmer, while the euro and yen are softer. We had anticipated a recovery of the dollar on ideas that the market has too aggressively pushed...
Broadly speaking, the dollar’s recent pullback was extended today but the momentum appears to be slowing, perhaps ahead of tomorrow’s US CPI report. The Dollar Index slipped to its lowest level since September 25 before...
Poor European flash PMI pushed on open door, giving the market a new reason to do what it was doing and that buying the dollar. The euro has approached important support around $1.08 and sterling...
The Fed’s hawkish hold and signal that it may raise rates two more time this year sent ripples through the capital markets. Risk appetites have been dealt a blow. However, China’s rate cut and likely...
The back-to-back surprise rate hikes by the Australia and Canada spurred speculation that the Fed could hike next week, and this lifted US rates and helped the dollar recover. The odds of a hike increased,...
Some creeping optimism about the US debt ceiling, easing of pressure on bank shares, and a continued rise in US rates helped the dollar extend its recent recovery. Over the past two weeks or so,...
The market sentiment remains fragile. Equities are mostly lower. Japan was a notable exception, and concerns about China’s economy after a sharp decline in imports took mainland and Hong Kong listed companies sharply lower. Europe’s...