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Even When She Speaks Softly, She's Yellen

January 19, 2021
Overview: The animal spirits are on the march today.  Equities are mostly higher, peripheral European bonds are firm, and the dollar is mostly softer. After posting the first back-to-back decline this year, the MSCI Asia Pacific Index bounced back today, led by a 2.7% gain in Hong Kong (20-month high) and a 2.6% rise in South Korea's Kospi.  T…
Even When She Speaks Softly, She's Yellen Even When She Speaks Softly, She's Yellen Reviewed by Marc Chandler on January 19, 2021 Rating: 5
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US is on Holiday, but the Dollar has Legs

January 18, 2021
 Overview: The new week has begun like last week ended.  Equities are a bit heavy.  The MSCI Asia Pacific Index fell for the second session, its first back-to-back loss since before Christmas.  China and Hong Kong were the notable exceptions, perhaps helped by stronger than expected GDP.  Europe's Dow Jones Stoxx 600, which fell 1% at the end …
US is on Holiday, but the Dollar has Legs US is on Holiday, but the Dollar has Legs Reviewed by Marc Chandler on January 18, 2021 Rating: 5
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Upside Dollar Correction Not Complete

January 17, 2021
Within the context of our medium-term dollar bearish outlook, we had been anticipating a countertrend dollar bounce.  It was to be fueled by short-covering as the adverse developments had been discounted, rate differentials were moving in the US favor, and the technical indicators were stretched.  When the dollar traded higher after the disappoint…
Upside Dollar Correction Not Complete Upside Dollar Correction Not Complete Reviewed by Marc Chandler on January 17, 2021 Rating: 5
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Darkest Before Dawn

January 16, 2021
The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.  Germany's M…
Darkest Before Dawn Darkest Before Dawn Reviewed by Marc Chandler on January 16, 2021 Rating: 5
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The Greenback is Finishing the Week with a Firm Tone

January 15, 2021
Overview:  The US dollar is firm against most of the major and emerging market currencies today.  Among the majors, the Japanese yen and Swiss franc are resilient. For the week, sterling and the yen appear poised to eke out small gains, while the Scandi's are the weakest performers with around a 1% decline. The freely accessible emerging marke…
The Greenback is Finishing the Week with a Firm Tone The Greenback is Finishing the Week with a Firm Tone Reviewed by Marc Chandler on January 15, 2021 Rating: 5
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Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus

January 14, 2021
Overview:  The capital markets are becalmed today. There does not appear to be much reaction to the news that the House of Representatives impeached President Trump an unprecedented second time with greater bipartisan support than previously (10 GOP voted with the Democratic majority).  Nor has there been a significant reaction to Italy's poli…
Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus Reviewed by Marc Chandler on January 14, 2021 Rating: 5
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PBOC Sends Signal as Market Looks Past Impeachment Vote

January 13, 2021
Overview: The US dollar is regaining ground lost in yesterday's setback against the major currencies.  Sterling is the notable exception.  It was toying with the $1.37 area, perhaps helped by the Governor of the Bank of England signal that there still are hurdles to adopting negative interest rates, which the futures market is still discountin…
PBOC Sends Signal as Market Looks Past Impeachment Vote PBOC Sends Signal as Market Looks Past Impeachment Vote Reviewed by Marc Chandler on January 13, 2021 Rating: 5
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Markets Catch Collective Breath

January 12, 2021
Overview:  The capital markets were stabilizing today after dramatic moves yesterday. Equity markets are recovering, and the dollar is paring yesterday's gains.  Most equity markets in the Asia Pacific region rose, though Taiwan, South Korea, and Australia were notable exceptions.  Europe's Dow Jones Stoxx 600 is posting a small gain, whic…
Markets Catch Collective Breath Markets Catch Collective Breath Reviewed by Marc Chandler on January 12, 2021 Rating: 5
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Greenback Extends Recovery

January 11, 2021
Overview: Julius Ceasar is said to have "crossed the Rubicon" on January 10, 49 BCE, taking the 13th Legion into Rome, defying orders from the Senate, and precipitating the Roman Civil War that marked the end of the republic and the birth of the empire.   Last week's events paled in comparison despite the US President urging his supp…
Greenback Extends Recovery Greenback Extends Recovery Reviewed by Marc Chandler on January 11, 2021 Rating: 5
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