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China Action on Commodities and Crypto Featured

May 24, 2021
Overview: The US dollar is firmer in the European morning after starting out with a softer bias in Asia Pacific turnover.  The dollar-bloc currencies, sterling, and the Swiss franc are heavy, but ranges are narrow, and consolidation seems to be the flavor of the day.  Central and Eastern European currencies are faring best among emerging markets, …
China Action on Commodities and Crypto Featured China Action on Commodities and Crypto Featured Reviewed by Marc Chandler on May 24, 2021 Rating: 5
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Consolidation in FX may be Welcome Given the Volatility Elsewhere

May 23, 2021
The reluctance of the Federal Reserve officials to signal a recalibration of policy given the booming economy, rising inflation and inflation expectations, and strong demand, as the vaccine rollout allows for a broader economic re-opening, continues to cap the dollar.  The jump in rates following the CPI surprise earlier in May and (misreading) of…
Consolidation in FX may be Welcome Given the Volatility Elsewhere Consolidation in FX may be Welcome Given the Volatility Elsewhere Reviewed by Marc Chandler on May 23, 2021 Rating: 5
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Discounting Policy Errors

May 22, 2021
The upcoming high-frequency economic data are unlikely to sway investors or policymakers. The key issue is whether price pressures are more than transitory, as officials at the Federal Reserve, European Central Bank, and the Bank of England say quite adamantly.  Investors are less sanguine.  European bond yields rose to the highs for the year last…
Discounting Policy Errors Discounting Policy Errors Reviewed by Marc Chandler on May 22, 2021 Rating: 5
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Eerie Calm Ahead of the Weekend

May 21, 2021
Overview:  Perhaps the dramatic volatility seen earlier this week has sapped the market's energy, and an eerie calm appears to be taking hold ahead of the weekend.  Despite the strong showing by US equities yesterday, the spillover into the Asia Pacific was limited.  Equity markets were mixed, Japan, Australia, Taiwan, and India among the stro…
Eerie Calm Ahead of the Weekend Eerie Calm Ahead of the Weekend Reviewed by Marc Chandler on May 21, 2021 Rating: 5
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Market Stabilize after Yesterday's Tumultuous Session

May 20, 2021
Overview:  US equity indices finished lower, but the real story was their recovery. Asia Pacific equities were mixed, with Australia's 1.5% rally leading the recovery in some markets, including Tokyo and Singapore.  Europe's Dow Jones Stoxx 600 is up a little more than 0.5% near mid-session, led by information technology and industrials, w…
Market Stabilize after Yesterday's Tumultuous Session Market Stabilize after Yesterday's Tumultuous Session Reviewed by Marc Chandler on May 20, 2021 Rating: 5
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Now What Does Bitcoin say About the Dollar and the US?

May 19, 2021
Overview: A setback in commodities and technology are roiling equity markets today.  The inability of US equities to sustain yesterday's rally provided an initial headwind to trading in the Asia Pacific region today.  Hong Kong and South Korea markets were closed for holidays, but most of the bourses fell, led by Australia, where the market tu…
Now What Does Bitcoin say About the Dollar and the US? Now What Does Bitcoin say About the Dollar and the US?  Reviewed by Marc Chandler on May 19, 2021 Rating: 5
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Risk Appetites Return Bigly

May 18, 2021
Overview:  In Asia, equities markets rallied strongly, led by the more than 5% gain in Taiwan, the most in over a year as Monday's 3% drop was more than overcome.  The Nikkei gained more than 2% despite the deeper than expected contraction in Q1 GDP.  Hong Kong, South Korea, and India also rose more than a 1% gain as tech came roaring back.  I…
Risk Appetites Return Bigly Risk Appetites Return Bigly Reviewed by Marc Chandler on May 18, 2021 Rating: 5
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US and Europe may Announce Tariff Truce

May 17, 2021
Overview:  There are two general developments as the busy week gets underway.  First, despite accelerated price readings in the US (CPI, PPI, import prices, and University of Michigan survey), US rates are soft.  The 10-year yield is near 1.61% after rising to 1.70% after the CPI surprise last week.  This, in turn, appears to be limiting the dolla…
US and Europe may Announce Tariff Truce US and Europe may Announce Tariff Truce Reviewed by Marc Chandler on May 17, 2021 Rating: 5
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Treasuries Call the Tune in FX

May 16, 2021
The higher than expected US CPI spurred a jump in rates and the greenback, but it proved to be little more than a bull trap.  The dollar's upside momentum faded even before the large miss on retail sales ahead of the weekend.  Yes, if one averages some recent data and squint in just the right way, the reports don't look so bad,  but the po…
Treasuries Call the Tune in FX Treasuries Call the Tune in FX Reviewed by Marc Chandler on May 16, 2021 Rating: 5
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