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USD Resilience in the Face of Aggressive Fed Easing Expectations

June 16, 2019
News that despite the disappointing jobs growth and weaker earnings growth, the engine of the US economy--consumers--remain resilient helped lift the dollar, which retraced most if not all of the previous week's losses.  The dollar rose against all the major and most of the emerging market currencies.  The Mexican peso was the best-performing …
USD Resilience in the Face of Aggressive Fed Easing Expectations USD Resilience in the Face of Aggressive Fed Easing Expectations Reviewed by Marc Chandler on June 16, 2019 Rating: 5
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FOMC, EMU PMI, and Pre-G20 Positioning: Crossroads and Crosswinds

June 15, 2019
The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty.  The FOMC meeting, with updated forecasts, is center stage.  The credit markets are pushing the Fed to be aggressive but can be disappointed.  In the eurozone, the preliminary PMI may confirm a modest, even if uneven recover…
FOMC, EMU PMI, and Pre-G20 Positioning: Crossroads and Crosswinds FOMC, EMU PMI, and Pre-G20 Positioning:  Crossroads and Crosswinds Reviewed by Marc Chandler on June 15, 2019 Rating: 5
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Waning Risk Appetite Going into the Weekend

June 14, 2019
Overview:  Worries about an escalation in the Gulf following US accusations that Iran was behind yesterday's two attacks and weaker growth impulses, while trade tensions remain high, are dampening risk appetites ahead of the weekend.  Equities are lower.  Nearly all the stock markets in the Asia Pacific region fell today with Japan and Austral…
Waning Risk Appetite Going into the Weekend Waning Risk Appetite Going into the Weekend Reviewed by Marc Chandler on June 14, 2019 Rating: 5
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Financial Statecraft or Whack-a-Mole

June 13, 2019
Overview: After roiling the markets by threatening escalating tariffs on Mexico, US President Trump has threatened China that if Xi does not meet him and return to the positions that the US claims it had previously, he will through on imposing tariffs to the remaining goods the US buys from China that have not already been penalized.  Yesterday as…
Financial Statecraft or Whack-a-Mole Financial Statecraft or Whack-a-Mole Reviewed by Marc Chandler on June 13, 2019 Rating: 5
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Great Graphic: Euro's (OECD) PPP

June 12, 2019
US President Trump recently bemoaned the fact that the euro is undervalued.  While his critics complain that he is prone to exaggeration, in this case, the euro is undervalued.  This Great Graphicisa long-term chart of the euro has moved around its purchasing power parity as measured by the OECD.  Currently, the euro is about 22% undervalued, and …
Great Graphic: Euro's (OECD) PPP Great Graphic: Euro's (OECD) PPP Reviewed by Marc Chandler on June 12, 2019 Rating: 5
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Anxiety Ticks Up, Risks Pared

June 12, 2019
Overview: The S&P 500 snapped a five-day advance yesterday and set the heavier tone for equities today.  Continued protests in Hong Kong were not shrugged off as they have been in the last couple of sessions.  The Hang Seng's nearly 1.9% decline was the largest in a month and led the region lower.  European shares are falling in sympathy, …
Anxiety Ticks Up, Risks Pared Anxiety Ticks Up, Risks Pared Reviewed by Marc Chandler on June 12, 2019 Rating: 5
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Markets Take Another Small Step Away from the Edge

June 11, 2019
Overview:  The recovery in equities continues today in light news day.  Nearly all the bourses in the Asia Pacific region rose, led by a 2.6% gain of the Shanghai Composite.  The MSCI Asia Pacific Index rose for a third session. European equity benchmarks are rising for the sixth time in the past seven sessions.  The Dow Jones Stoxx 600 peaked a w…
Markets Take Another Small Step Away from the Edge Markets Take Another Small Step Away from the Edge Reviewed by Marc Chandler on June 11, 2019 Rating: 5
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Collective Sigh of Relief Lifts Equities, Yields, and the Dollar

June 10, 2019
Overview: A global sigh of relief that the US will not tariff all its imports from Mexico.  Equities are all higher, and the weekend demonstrations in Hong Kong over a bill allowing extraditions to the mainland for the first time did not deter investors from bidding up the Hang Seng over 2.3%, the most this year.  European equities are following s…
Collective Sigh of Relief Lifts Equities, Yields, and the Dollar Collective Sigh of Relief Lifts Equities, Yields, and the Dollar Reviewed by Marc Chandler on June 10, 2019 Rating: 5
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A Look at the Charts

June 09, 2019
The US dollar fell against all the major currencies last week, and the technical indicators warn the further losses are likely.  Market speculation that the Federal Reserve will be forced to cut rates more than once this year has strengthened.  It is outpacing the expectations that the ECB and BOJ will have to ease policy as well.  Canada's fi…
A Look at the Charts A Look at the Charts Reviewed by Marc Chandler on June 09, 2019 Rating: 5
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