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The Euro and Sterling Remain within Tuesday's Ranges

October 22, 2021
Overview: A new record high in the S&P 500 yesterday and news that Evergrande had made an interest rate payment failed to lift most Asia Pacific bourses, though Japan and Hong Kong, among the large markets, posted modest gains.  The Dow Jones Stoxx 600 is pushing higher in the European morning to put its finishing touches on its third consecut…
The Euro and Sterling Remain within Tuesday's Ranges The Euro and Sterling Remain within Tuesday's Ranges Reviewed by Marc Chandler on October 22, 2021 Rating: 5
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Markets Turn Cautious

October 21, 2021
Overview: After a couple of sessions of taking on more risk, investors are taking a break today.  Equities are mostly lowertoday after the S&P 500's six-day advance took it almost to its record high, while the NASDAQ's streak was halted at five sessions.  The Nikkei's nearly 1.8% slide paced the Asia-Pacific session, where most bou…
Markets Turn Cautious Markets Turn Cautious Reviewed by Marc Chandler on October 21, 2021 Rating: 5
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Consolidative Session as Markets Await Fresh Incentives

October 20, 2021
Overview: The markets lack a clear direction today and await fresh incentives.  After gaining almost 1% yesterday, the MSCI Asia Pacific Index slipped.  Japan, Hong Kong, and Australia are among the few equity markets that rose.  The Dow Jones Stoxx 600 is posting minor gains, while US futures are largely steady.   The S&P 500 and NASDAQ have …
Consolidative Session as Markets Await Fresh Incentives Consolidative Session as Markets Await Fresh Incentives Reviewed by Marc Chandler on October 20, 2021 Rating: 5
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Dollar Slumps

October 19, 2021
Overview:  While equities and bonds are firmer, it is the dollar's sell-off that stands out today.  The greenback has retreated broadly.    The euro is trading above the previous week's high for the first time in over a month, and the dollar was pushed back below JPY114.00 in early European turnover. The Chinese yuan is at four-month highs…
Dollar Slumps Dollar Slumps Reviewed by Marc Chandler on October 19, 2021 Rating: 5
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The Jump in Rates Does Little for Sterling, the Canadian Dollar, and the New Zealand Dollar The Jump in Rates Does Little for Sterling, the Canadian Dollar, and the New Zealand Dollar Reviewed by Marc Chandler on October 18, 2021 Rating: 5
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Greenback's Gains Pared Mostly, but Extended Against the Yen

October 17, 2021
The Antipodeans and the Scandis led last week's move against the dollar, registering more than 1% gains.  The yen was the weakest of the major currencies, falling almost 1.75%, its worst week since March 2020.  The JP Morgan Emerging Market Currency Index initially declined to a new low for the year before recovering to snap a five-week slide …
Greenback's Gains Pared Mostly, but Extended Against the Yen Greenback's Gains Pared Mostly, but Extended Against the Yen Reviewed by Marc Chandler on October 17, 2021 Rating: 5
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The Dramatic Rise in Energy Prices is Ultimately Deflationary

October 16, 2021
The Swiss had imposed negative rates on foreign currency deposits in the 1970s to counter the upward pressure on the franc, but Denmark became the first central bank to put its policy rate below zero in 2012.  There are now around $11.8 trillion of negative-yielding bonds, the least, incidentally, since mid-2020.  At the end of 2019, the value of …
The Dramatic Rise in Energy Prices is Ultimately Deflationary The Dramatic Rise in Energy Prices is Ultimately Deflationary Reviewed by Marc Chandler on October 16, 2021 Rating: 5
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CAD Extends Gains, While Yen Slumps Further

October 15, 2021
Overview:  The S&P 500 and NASDAQ gapped higher yesterday and closed strong, helped by robust earnings reports.  This, coupled with TSCM earnings and Beijing easing mortgage lending, helped lift the MSCI Asia Pacific Index for the third consecutive session.  The returning Hong Kong market, Tokyo, and Taipei advanced more than 1% to lead the re…
CAD Extends Gains, While Yen Slumps Further CAD Extends Gains, While Yen Slumps Further Reviewed by Marc Chandler on October 15, 2021 Rating: 5
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A Short Note on the Pricing of the Fed Funds Futures: Aggressive

October 14, 2021
In assessing the trajectory of Fed policy the market is discounting, we prefer using the Fed funds futures contracts over the Eurodollar futures.  The Fed funds settle at the average effective rate, while the Eurodollar futures contracts are three-month deposit rates.  The Fed funds futures seem to be implying aggressive tightening by the Federal …
A Short Note on the Pricing of the Fed Funds Futures: Aggressive A Short Note on the Pricing of the Fed Funds Futures:  Aggressive Reviewed by Marc Chandler on October 14, 2021 Rating: 5
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