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Limited Immediate Impact from Quebec

June 11, 2018
Following what was the worst G7 summit and US officials pressing their case in the media, investors showed a modest reaction.  The Canadian dollar and Mexican peso were marked lower on fears that vitriolic US response boosts the likelihood that the US withdraws from NAFTA.  
If there was a winner at the G7 summit, and leaving aside the claims that …
Limited Immediate Impact from Quebec Limited Immediate Impact from Quebec Reviewed by Marc Chandler on June 11, 2018 Rating: 5
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Emerging Markets: Preview of the Week Ahead

June 10, 2018
(from my colleague Dr. Win Thin)

EM FX ended Friday on a mixed note, capping off a roller coaster week for some of the more vulnerable currencies.  We expect continued efforts by EM policymakers to inject some stability into the markets.  However, we believe the underlying dollar rally remains intact.  Central bank meetings in the US, eurozone, and…
Emerging Markets: Preview of the Week Ahead Emerging Markets:  Preview of the Week Ahead Reviewed by Marc Chandler on June 10, 2018 Rating: 5
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The Dollar's Correction may not be Over

June 10, 2018
For the second week in a row, the US dollar moved lower against all the major currencies, save the Japanese yen.  Broadly speaking, the technical indicators suggest the greenback's pullback may not be complete.  We continue to view the price action is corrective in nature, after the strong performance record since the middle of Q1. 
However, th…
The Dollar's Correction may not be Over The Dollar's Correction may not be Over Reviewed by Marc Chandler on June 10, 2018 Rating: 5
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Busy Week Ahead

June 09, 2018
The week ahead is eventful.  The Federal Reserve, the European Central Bank, and the Bank of Japan hold policy meetings.  This would make for a busy week by themselves, but there is more.  Trade tensions are likely to escalate further, if the US, as scheduled provides a list of $50 bln of Chinese goods that will face another 25% tariff for intelle…
Busy Week Ahead Busy Week Ahead Reviewed by Marc Chandler on June 09, 2018 Rating: 5
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Emerging Markets: What Changed

June 08, 2018
(from my colleague Dr. Win Thin)  The Reserve Bank of India hiked rates for the first time since 2014.Malaysia’s central bank governor resigned.Czech central bank tilted more hawkish.Russia central bank tilted more dovish.Argentina got a $50 bln standby program from the IMF.Brazil central bank signaled more aggressive FX intervention ahead.Mexico t…
Emerging Markets: What Changed Emerging Markets:  What Changed Reviewed by Marc Chandler on June 08, 2018 Rating: 5
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Dollar and Yen Rise Amid Heightened Anxiety

June 08, 2018
With what promises to be an acrimonious G7 meeting, from which the isolated US President will depart early, and a broadening pressure in emerging markets, the US dollar turned better bid late yesterday and is recovering further today.  Disappointing April industrial production figures in Germany and France did not do the euro any favors.  Sterling…
Dollar and Yen Rise Amid Heightened Anxiety Dollar and Yen Rise Amid Heightened Anxiety Reviewed by Marc Chandler on June 08, 2018 Rating: 5
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Don't Forget Greece

June 07, 2018
Developments in Italy and the growing estrangement between the US and Europe, not just over trade, but Russia and Iran as well, are overshadowing the conclusion of the third assistance program for Greece.   The end like the beginning is a bit rolling, in the sense that the formal program ends this month,  but the final payment is expected in Augus…
Don't Forget Greece Don't Forget Greece Reviewed by Marc Chandler on June 07, 2018 Rating: 5
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Dollar Pullback Extended Against Euro and Sterling

June 07, 2018
The US dollar is mixed today, but its losses against the euro and sterling are giving it a heavier tone.  We suspect the move is mostly corrective in nature, but recognize that investors have brought forward the first ECB rate hike from the September-October 2019 to next June.  A week ago, indicative pricing suggesting a couple basis points were p…
Dollar Pullback Extended Against Euro and Sterling Dollar Pullback Extended Against Euro and Sterling Reviewed by Marc Chandler on June 07, 2018 Rating: 5
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Greenback Corrects Lower

June 06, 2018
The consensus narrative is that with rising inflation it is understandable that next week's meeting is live and that the confirmation of such has lifted the euro to ten-day highs, dragging the dollar broadly.  However, to accept this is to accept the debasement of language.  Until now, we dubbed central bank meeting that could result in action…
Greenback Corrects Lower Greenback Corrects Lower Reviewed by Marc Chandler on June 06, 2018 Rating: 5
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