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Greenback Demand Not Satisfied by Swap Lines

March 23, 2020
Overview: In HG Wells' "War of the Worlds," the common cold repelled a Martian invasion. Now, a novel coronavirus is disrupting everything and everywhere. Global equities continue to get hammered, though the apparent relative resilience of Japan may have spurred some buying of Japanese equities. Both the Nikkei and Topix posted gains…
Greenback Demand Not Satisfied by Swap Lines Greenback Demand Not Satisfied by Swap Lines Reviewed by Marc Chandler on March 23, 2020 Rating: 5
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High Anxiety is Auto-Correlated

March 22, 2020
The economic and financial reaction to the global pandemic has triggered a surge in the US dollar, which itself may amplify the disruption that is evident throughout the capital markets.  The macro analysis piece (The Economic Tsunami that has Begun and the Drive for Cash) focuses on the fundamental considerations behind the greenback's surge.…
High Anxiety is Auto-Correlated High Anxiety is Auto-Correlated Reviewed by Marc Chandler on March 22, 2020 Rating: 5
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The Economic Tsunami that has Begun and the Drive for Cash

March 21, 2020
With swarms of locusts in Africa and the Middle East and a particularly virulent virus spreading around the globe, the coming crisis may feel like the end of days. An economic tsunami has been unleashed. A consensus appears to be emerging among economists of the largest contraction in global GDP in a generation. Separately, but partly related as w…
The Economic Tsunami that has Begun and the Drive for Cash The Economic Tsunami that has Begun and the Drive for Cash Reviewed by Marc Chandler on March 21, 2020 Rating: 5
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Markets Ending the Week on Better Note

March 20, 2020
Overview:  Dramatic price action continues but in the other direction.  Stocks and bonds have rallied strongly, and the US dollar is snapping a strong advance with a sharp and broad setback.  The immediate trigger is hard to identify.  Some accounts linking it to fears that the California shutdown will be repeated throughout the country, deepening…
Markets Ending the Week on Better Note Markets Ending the Week on Better Note Reviewed by Marc Chandler on March 20, 2020 Rating: 5
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ECB's Bazooka Support Bonds but not the Euro

March 19, 2020
Overview: It is not just that the dollar soared while stocks and bonds continued to plunge.  The dollar's strength is, in effect, a powerful short-covering rally.  It was used to fund a great part of the global circuit of capital.  The circuit of capital is in reverse now, and the funding currency is being bought back. The dollar's strengt…
ECB's Bazooka Support Bonds but not the Euro ECB's Bazooka Support Bonds but not the Euro Reviewed by Marc Chandler on March 19, 2020 Rating: 5
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