With a US-Japanese deal in hand, and the prospects of an extended tariff truce between the US and China, many perceive some tail risks associated with the US foreign economic policy have diminished. This has...
The US announced that the 25% steel and aluminum tariffs will not be effective for a month (March 12), and this gives the impression that they are a negotiating tactic, which may help explain why...
The dollar continues to ride high. It is up 0.20%-0.50% today against the G10 currencies. Most pairs have extended last week’s moves. The Dollar Index, which was near 100 in late September is approaching 106.00....
A nervous calm hangs over the markets as the US goes to the polls. The proximity of the presidential contest warns that the results may not been known as soon as people hope. Indeed, many...
The US dollar is mixed, but the spotlight is on the Japanese yen. It appears that with the market challenging Monday’s intervention, Japanese officials entered the market shortly after the US equity market closed yesterday,...
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...
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...
Perhaps it was the extent of First Republic Bank’s loss of deposits that were reported with earnings yesterday, but risk appetites dried up today. Asia Pacific equities were trounced outside Japan today. Hong Kong and...
As the long-holiday ends, risk appetites have returned. Equities and yields are mostly higher. The dollar is seeing yesterday’s gains pared. Yesterday’s setback in the yen helped lift Japanese stocks, with the Nikkei advancing 1%....
