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Abe's Fiscal Policy: More of the Same

August 02, 2016
The Japanese government is delivering the other half of its fiscal policy today.  Earlier, Abe decided to postpone the sales tax hike for the second time.  Today, the cabinet approved a JPY28 trillion (5.6%) of GDP package. 
The market is looking past the headlines and is not impressed with the details.  The JPY4.6 trillion of measures (~1% of GDP)…
Abe's Fiscal Policy: More of the Same Abe's Fiscal Policy: More of the Same Reviewed by Marc Chandler on August 02, 2016 Rating: 5
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Greenback Slides Despite RBA Rate Cut and 7-year Low in UK Construction PMI

August 02, 2016
The US dollar is offered against the major currencies, but appreciating against many emerging market currencies, include the South African rand and Turkish lira.  Oil prices are trying to stabilize with Brent near $42 and WTI near $40, but the recent losses continue to weigh on the Malaysian ringgit and the Mexican peso.  
The dollar's weakness…
Greenback Slides Despite RBA Rate Cut and 7-year Low in UK Construction PMI Greenback Slides Despite RBA Rate Cut and 7-year Low in UK Construction PMI Reviewed by Marc Chandler on August 02, 2016 Rating: 5
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Great Graphic: Real Broad Trade-Weighted Dollar

August 01, 2016
This Great Graphic, created on Bloomberg, depicts the Federal Reserve's real broad trade-weighted index of the dollar. Real means that it is adjusted for inflation differentials.   Broad means that it covers a wide number of US partners.   Trade-weighted means that the countries that the US has more trade with are given greater role in the ind…
Great Graphic: Real Broad Trade-Weighted Dollar Great Graphic: Real Broad Trade-Weighted Dollar Reviewed by Marc Chandler on August 01, 2016 Rating: 5
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No Big Thoughts, but Several Smaller Observations

August 01, 2016
August has begun off with clear price action.  The US dollar is stronger against nearly all the major currencies.  Bond yields are higher.  Equities and commodities are most lower.  
However outside of the purchasing managers July manufacturing prints, these does not appear to be an overarching story today.  Investors are still trying to make sense…
No Big Thoughts, but Several Smaller Observations No Big Thoughts, but Several Smaller Observations Reviewed by Marc Chandler on August 01, 2016 Rating: 5
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Dog Days of August Begin

August 01, 2016
The US dollar is trading with a small upside bias in narrow trading ranges.  The main news has consisted of PMI reports, while investors continue to digest last week's developments.  In particular the BOJ's underwhelming response to poor economic data and a missed opportunity to reinforce the fiscal stimulus, and the dismal US GDP.  
China&…
Dog Days of August Begin Dog Days of August Begin Reviewed by Marc Chandler on August 01, 2016 Rating: 5
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