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The Greenback Slips to Start the New Week

November 15, 2021
Overview:  While the Belarus-Poland border remains an intense standoff, there have been a couple other diplomatic developments that may be exciting risk appetites today.  First, Biden and Xi will talk by phone later today.  Second, reports suggest the UK has toned down its rhetoric making progress on talks on the implementation of the Northern Ire…
The Greenback Slips to Start the New Week The Greenback Slips to Start the New Week Reviewed by Marc Chandler on November 15, 2021 Rating: 5
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CPI Shocker Lifted the Greenback, which now needs to Take a Breath

November 14, 2021
The jump in US headline CPI above 6% crossed some Rubicon and injected dynamic into the process.  The dollar rallied, and new highs for the year were recorded against the euro and sterling.  The dovish tapering announcement by the Fed on November 3 was completely unwound as the December 2022 Fed funds futures returned to the high-yield mark of 66 …
CPI Shocker Lifted the Greenback, which now needs to Take a Breath CPI Shocker Lifted the Greenback, which now needs to Take a Breath Reviewed by Marc Chandler on November 14, 2021 Rating: 5
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US Retail Sales and Industrial Output to Accelerate; China not so Much

November 13, 2021
At the halfway point of Q4, the markets' focus is on three things:  inflation, growth, and central banks' response. With US and Chinese October inflation readings behind us, the focus shifts to the real economy's performance, the world's two largest economies reporting retail sales and industrial production figures.   Helped by str…
US Retail Sales and Industrial Output to Accelerate; China not so Much US Retail Sales and Industrial Output to Accelerate; China not so Much Reviewed by Marc Chandler on November 13, 2021 Rating: 5
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Euro and Sterling Record New Lows for the Year

November 12, 2021
Overview: The capital markets remain unsettled.  The US CPI with a 6%-handle has lifted bond market volatility, disrupted rallies in stocks, and extended the dollar's rally.   Small gains in the US S&P 500 and NASDAQ yesterday and a better news stream from China helped lift Asia Pacific equities today.  Benchmarks in Japan, South Korea, an…
Euro and Sterling Record New Lows for the Year Euro and Sterling Record New Lows for the Year Reviewed by Marc Chandler on November 12, 2021 Rating: 5
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Half a Dozen Things You Should Know about FX

November 11, 2021
1.  The market is still digesting the implications of Wednesday's CPI shock.  The dollar has strengthened, yields have risen, the stock market wobbled after a long advancing streak, and in any event, stabilized in light trading during the US and Canadian holidays. However, given the low year-ago reading, there is a significant risk that inflat…
Half a Dozen Things You Should Know about FX Half a Dozen Things You Should Know about FX Reviewed by Marc Chandler on November 11, 2021 Rating: 5
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China's CPI Accelerated to 1.5%, US CPI to Approach 6%

November 10, 2021
Overview: As bond yields slumped yesterday, stocks snapped their advancing streak.  The Stoxx 600 fell for the first time in nine sessions yesterday and is lower today.  The S&P 500 ended a nine-session advance, and the NASDAQ snapped a 12-session rally.  Futures on the indices point to a lower open.  Bonds are paring yesterday's gain, whi…
China's CPI Accelerated to 1.5%, US CPI to Approach 6% China's CPI Accelerated to 1.5%, US CPI to Approach 6% Reviewed by Marc Chandler on November 10, 2021 Rating: 5
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Falling Yields Give the Yen a Boost

November 09, 2021
Overview: Reports that the Fed's Brainard was interviewed for the Chair helped soften yields a bit, not that they needed extra pressure, on ideas she is more dovish than Powell.  In turn, the lower yields saw the yen rise to its best level in nearly a month and led the major currencies higher against the dollar.  The yen is joined by the Scand…
Falling Yields Give the Yen a Boost Falling Yields Give the Yen a Boost Reviewed by Marc Chandler on November 09, 2021 Rating: 5
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Markets Await Fresh Developments

November 08, 2021
Overview: Last week's bond market rally has stalled.  Benchmark 10-year yields are up 1-3 bp in Europe, and the three bp increase in the US puts the yield slightly below 1.50%.  Equities were mixed in the Asia Pacific region.  Japan, Hong Kong, South Korea, and Australia nursed losses after the regional benchmark (MSCI) rose 0.65% last week.  …
Markets Await Fresh Developments Markets Await Fresh Developments Reviewed by Marc Chandler on November 08, 2021 Rating: 5
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Profit-Taking on Dollar Longs after Better than Expected Jobs Report Sets Stage Until CPI Profit-Taking on Dollar Longs after Better than Expected Jobs Report Sets Stage Until CPI Reviewed by Marc Chandler on November 07, 2021 Rating: 5
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