Edit

Firm Dollar Tone may be Challenged by Softer Yields

July 10, 2017
The US dollar has begun the new week on a firm note, but the decline in yields limit the gains.   The US 10-year yield is pulling back from the 2.40% area, which is it not been able to sustain gains above since Q1.  European bond yields are also 1-3 basis points lower today after jumping last week.    Equities are mostly firmer.  The MSCI Asia Paci…
Firm Dollar Tone may be Challenged by Softer Yields Firm Dollar Tone may be Challenged by Softer Yields Reviewed by Marc Chandler on July 10, 2017 Rating: 5
Edit

Preview: Emerging Markets

July 09, 2017
(from my colleague Dr. Win Thin)

EM FX closed last week on a firm note, as the stronger than expected US jobs gain was mitigated by lower than expected average hourly earnings.  Still, we believe that global liquidity conditions will continue to move against EM, as the Fed continues tightening and others join in.  This week, BOC may be the first o…
Preview: Emerging Markets Preview: Emerging Markets Reviewed by Marc Chandler on July 09, 2017 Rating: 5
Edit

Week Ahead: Bank of Canada, US CPI, and UK Labor Update Featured

July 09, 2017
On June 26, the 10-year generic German yield closed at 24.5 basis points. It finished last week a little over 57 basis points. The similar Italian yield has risen 45 basis points to 2.05%. The short-end of the yield curve is constrained by the negative 40 basis point deposit rate. The steepening of the yield curve offsets the price erosion of …
Week Ahead: Bank of Canada, US CPI, and UK Labor Update Featured Week Ahead:  Bank of Canada, US CPI, and UK Labor Update Featured Reviewed by Marc Chandler on July 09, 2017 Rating: 5
Edit

Speculators Still Dollar Negative

July 08, 2017
Speculators in the futures market made several significant position adjustments in the CFTC reporting week ending July 4, despite it being a holiday-shortened week.  The gross adjustments were mostly to reduce long dollar exposure and increase short dollar exposure.  This accounted for a full three-quarters of the speculative position adjustments.…
Speculators Still Dollar Negative Speculators Still Dollar Negative Reviewed by Marc Chandler on July 08, 2017 Rating: 5
Edit

Dollar Shows Signs of Life

July 08, 2017
The US employment data underscores the resilience of the US economy. Given the Fed's commitment to the Phillip's Curve, the robust jobs growth is sufficient to keep the faith that inflation will rise over time.  Yellen can be expected to underscore this in her semi-annual testimony to Congress in the week ahead.  The threat that the Bank o…
Dollar Shows Signs of Life Dollar Shows Signs of Life Reviewed by Marc Chandler on July 08, 2017 Rating: 5
Edit

Emerging Markets: What has Changed

July 07, 2017
(from my colleague Dr. Win Thin)

The US confirmed North Korea's claims that it tested an intercontinental ballistic missile.The Pakistani rupee was devalued, prompting a new central bank governor to be named.Vietnam’s central bank cut interest rates for the first time since March 2014.Egypt’s central bank surprised markets with …
Emerging Markets: What has Changed Emerging Markets:  What has Changed Reviewed by Marc Chandler on July 07, 2017 Rating: 5
Edit

Taper Tantrum 2.0 Dominates

July 07, 2017
Taper Tantrum 2.0, emanating from Europe rather than the United States continues to overshadow other developments.Yesterday, the yield on the 10-year German Bund pushed through the 50 bp mark that has capped the occasional rise in yields in recent months.  The record of the ECB meeting was understood as indicating that the official assessment had …
Taper Tantrum 2.0 Dominates Taper Tantrum 2.0 Dominates Reviewed by Marc Chandler on July 07, 2017 Rating: 5
Edit

Stocks and Bonds Mostly Heavier, while Dollar Hovers Little Changed

July 06, 2017
The US dollar is narrowly mixed against the major currencies after being confined to tight ranges through the Asian session and European morning.  Equities are nursing small losses, and interest rates are pushing higher. The yield on the 10-year German Bund reached 50 bp for the first time since early 2016. Oil prices have steadied after yesterday…
Stocks and Bonds Mostly Heavier, while Dollar Hovers Little Changed Stocks and Bonds Mostly Heavier, while Dollar Hovers Little Changed Reviewed by Marc Chandler on July 06, 2017 Rating: 5
Edit

Dollar Firm as Investors Await Fresh Directional Cues

July 05, 2017
The US dollar is enjoying a firm  tone today. Yesterday's two weakest major currencies, the Australian dollar and Swedish krona are the strongest currencies, but little changed on the session. After a strong rebound in the greenback to start the week, it mostly consolidated yesterday.  
The euro was sold briefly through $1.1320 before finding a…
Dollar Firm as Investors Await Fresh Directional Cues Dollar Firm as Investors Await Fresh Directional Cues Reviewed by Marc Chandler on July 05, 2017 Rating: 5
Powered by Blogger.