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Faltering Friday

January 22, 2021
Overview: Fear that social restrictions may have to be broadened and extended is helping spur a wave of profit-taking and de-risking, which has also been encouraged by disappointingly high-frequency data.  The equity rally seemed to falter a bit in the US, as the S&P 500 eked out a minor 0.03% gain yesterday.  In the Asia Pacific region, Hong …
Faltering Friday Faltering Friday Reviewed by Marc Chandler on January 22, 2021 Rating: 5
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It is the ECB's Turn but Little New to be Said or Done

January 21, 2021
Overview:  The S&P 500 and NASDAQ gapped higher yesterday to record-levels, and the reflation theme lifted Asia Pacific shares for the third session today.  South Korea, Taiwan, and China led the advance.  Europe's Dow Jones Stoxx 600 gapped higher and is consolidating, seemingly waiting for fresh directional clues from the US, where a sma…
It is the ECB's Turn but Little New to be Said or Done It is the ECB's Turn but Little New to be Said or Done Reviewed by Marc Chandler on January 21, 2021 Rating: 5
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The Dollar Slips to New Lows against Sterling and the Mexican Peso

January 20, 2021
Overview: Global equities are moving higher today.  Led by continued strong buying of Hong Kong shares, the MSCI Asia Pacific Index rose to new highs.  The Hang Seng is up 6% this year and is approaching the 2019 record high.  Australia's shares set a new record today.  Japan and Taiwan bucked the trend.  Europe's Dow Jones Stoxx 600 has r…
The Dollar Slips to New Lows against Sterling and the Mexican Peso The Dollar Slips to New Lows against Sterling and the Mexican Peso Reviewed by Marc Chandler on January 20, 2021 Rating: 5
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Even When She Speaks Softly, She's Yellen

January 19, 2021
Overview: The animal spirits are on the march today.  Equities are mostly higher, peripheral European bonds are firm, and the dollar is mostly softer. After posting the first back-to-back decline this year, the MSCI Asia Pacific Index bounced back today, led by a 2.7% gain in Hong Kong (20-month high) and a 2.6% rise in South Korea's Kospi.  T…
Even When She Speaks Softly, She's Yellen Even When She Speaks Softly, She's Yellen Reviewed by Marc Chandler on January 19, 2021 Rating: 5
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US is on Holiday, but the Dollar has Legs

January 18, 2021
 Overview: The new week has begun like last week ended.  Equities are a bit heavy.  The MSCI Asia Pacific Index fell for the second session, its first back-to-back loss since before Christmas.  China and Hong Kong were the notable exceptions, perhaps helped by stronger than expected GDP.  Europe's Dow Jones Stoxx 600, which fell 1% at the end …
US is on Holiday, but the Dollar has Legs US is on Holiday, but the Dollar has Legs Reviewed by Marc Chandler on January 18, 2021 Rating: 5
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Upside Dollar Correction Not Complete

January 17, 2021
Within the context of our medium-term dollar bearish outlook, we had been anticipating a countertrend dollar bounce.  It was to be fueled by short-covering as the adverse developments had been discounted, rate differentials were moving in the US favor, and the technical indicators were stretched.  When the dollar traded higher after the disappoint…
Upside Dollar Correction Not Complete Upside Dollar Correction Not Complete Reviewed by Marc Chandler on January 17, 2021 Rating: 5
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Darkest Before Dawn

January 16, 2021
The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.  Germany's M…
Darkest Before Dawn Darkest Before Dawn Reviewed by Marc Chandler on January 16, 2021 Rating: 5
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The Greenback is Finishing the Week with a Firm Tone

January 15, 2021
Overview:  The US dollar is firm against most of the major and emerging market currencies today.  Among the majors, the Japanese yen and Swiss franc are resilient. For the week, sterling and the yen appear poised to eke out small gains, while the Scandi's are the weakest performers with around a 1% decline. The freely accessible emerging marke…
The Greenback is Finishing the Week with a Firm Tone The Greenback is Finishing the Week with a Firm Tone Reviewed by Marc Chandler on January 15, 2021 Rating: 5
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Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus

January 14, 2021
Overview:  The capital markets are becalmed today. There does not appear to be much reaction to the news that the House of Representatives impeached President Trump an unprecedented second time with greater bipartisan support than previously (10 GOP voted with the Democratic majority).  Nor has there been a significant reaction to Italy's poli…
Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus Markets are Subdued Despite Impeachment and Record Chinese Trade Surplus Reviewed by Marc Chandler on January 14, 2021 Rating: 5
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