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PBOC Sends Signal as Market Looks Past Impeachment Vote

January 13, 2021
Overview: The US dollar is regaining ground lost in yesterday's setback against the major currencies.  Sterling is the notable exception.  It was toying with the $1.37 area, perhaps helped by the Governor of the Bank of England signal that there still are hurdles to adopting negative interest rates, which the futures market is still discountin…
PBOC Sends Signal as Market Looks Past Impeachment Vote PBOC Sends Signal as Market Looks Past Impeachment Vote Reviewed by Marc Chandler on January 13, 2021 Rating: 5
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Markets Catch Collective Breath

January 12, 2021
Overview:  The capital markets were stabilizing today after dramatic moves yesterday. Equity markets are recovering, and the dollar is paring yesterday's gains.  Most equity markets in the Asia Pacific region rose, though Taiwan, South Korea, and Australia were notable exceptions.  Europe's Dow Jones Stoxx 600 is posting a small gain, whic…
Markets Catch Collective Breath Markets Catch Collective Breath Reviewed by Marc Chandler on January 12, 2021 Rating: 5
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Greenback Extends Recovery

January 11, 2021
Overview: Julius Ceasar is said to have "crossed the Rubicon" on January 10, 49 BCE, taking the 13th Legion into Rome, defying orders from the Senate, and precipitating the Roman Civil War that marked the end of the republic and the birth of the empire.   Last week's events paled in comparison despite the US President urging his supp…
Greenback Extends Recovery Greenback Extends Recovery Reviewed by Marc Chandler on January 11, 2021 Rating: 5
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Is the Dollar's Decline since the Election set to Correct?

January 10, 2021
The US election in early November was an inflection point.  Stocks have rallied.  The dollar has been sold. The rise in US yields has dragged up the yields in many other countries, especially in the dollar-bloc.  European bonds have held in better, and peripheral European bonds have shined.  Italy's 10-year benchmark yield fell to a new record…
Is the Dollar's Decline since the Election set to Correct? Is the Dollar's Decline since the Election set to Correct?  Reviewed by Marc Chandler on January 10, 2021 Rating: 5
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Macro Drivers while Covid Remains Out of Control

January 09, 2021
The new Covid outbreak, social restrictions, business closures, and lockdowns render most of the upcoming data mostly irrelevant.  Given the serious spread of the infection and the seemingly slow rollout of the vaccine, the economic data will be distorted even though the impact may not be as severe as last March and April. Policy settings are also…
Macro Drivers while Covid Remains Out of Control Macro Drivers while Covid Remains Out of Control Reviewed by Marc Chandler on January 09, 2021 Rating: 5
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Can the Dollar Find Traction Even if the Employment Data Disappoint?

January 08, 2021
Overview: The global equity rally picked up this week as it closed in 2019.  The MSCI Asia Pacific Index gained today and is up in nine of the past 10 sessions.  It has fallen only in one week since the end of October.  South Korea's Kospi led today's advance with a nearly 4% rally on the back of talks that were later played down between H…
Can the Dollar Find Traction Even if the Employment Data Disappoint? Can the Dollar Find Traction Even if the Employment Data Disappoint? Reviewed by Marc Chandler on January 08, 2021 Rating: 5
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Dollar Bounces after Insurrection Put Down

January 07, 2021
Overview:  After the National Guard were called to put down an insurrection in Washington, DC, the dollar is having its best day in around a week.  The euro's three-day rally has been halted even though German factory orders surprised on the upside.  The greenback is firmer against all the major and most of the emerging market currencies today…
Dollar Bounces after Insurrection Put Down Dollar Bounces after Insurrection Put Down Reviewed by Marc Chandler on January 07, 2021 Rating: 5
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High Drama Weighs on the Greenback and Lifts Yields

January 06, 2021
Overview:  One of the two Georgia Senate contests remains too close to call, but the market appears to be pricing in a Democrat sweep.  The 10-year yield has punched above 1% but has offered the greenback little support.  Yesterday, the dollar-bloc currencies rose to highs since early Q2 2018 and are extending those gains today.  The Scandis are a…
High Drama Weighs on the Greenback and Lifts Yields High Drama Weighs on the Greenback and Lifts Yields Reviewed by Marc Chandler on January 06, 2021 Rating: 5
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No Follow-Through Dollar Buying after Yesterday's Recovery: Consolidative Session Likely No Follow-Through Dollar Buying after Yesterday's Recovery:  Consolidative Session Likely Reviewed by Marc Chandler on January 05, 2021 Rating: 5
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