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Month-End Gyrations and the Fed's Ad Hocery

August 31, 2020
Overview: Markets are searching for direction at month-end. Asia Pacific shares outside of Japan lower. Berkshire Hathaway confirmed taking a $6 bln stake in Japanese trading companies over the past year, and the pullback in the yen helped lift shares.  The MSCI Asia Pacific Index rose 2% last week.  European bourses are higher, and the Dow Jones …
Month-End Gyrations and the Fed's Ad Hocery Month-End Gyrations and the Fed's Ad Hocery Reviewed by Marc Chandler on August 31, 2020 Rating: 5
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A Look at the Price Action

August 30, 2020
The idea that the Federal Reserve would tolerate higher inflation to compensate for the undershoot would on its face be dollar negative. Make no mistake about it. After a wobble, the dollar fell. It recorded new lows for the year against the British pound, Australian dollar, and Swedish krona ahead of the weekend. New lows for the month recor…
A Look at the Price Action A Look at the Price Action Reviewed by Marc Chandler on August 30, 2020 Rating: 5
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Sentiment is Fickle

August 29, 2020
Sentiment is a fickle lover.  It blows hot and cold quickly, though not entirely without reason.  For traders, it is often the deus ex machina. Sentiment had swung so hard against the dollar that astute observers and the leading financial press warn that its role in the world economy was in jeopardy.
The greenback recovered from the initial slide o…
Sentiment is Fickle Sentiment is Fickle Reviewed by Marc Chandler on August 29, 2020 Rating: 5
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Powell and Abe Drive Markets

August 28, 2020
Overview: After a confused and volatile reaction to the Federal Reserve's formal adoption of an average inflation target, it took Asian and European traders to embrace the signal and take the dollar lower.  It is falling against nearly all the currencies and has slumped to new lows for the year against sterling and the Australian dollar. Compo…
Powell and Abe Drive Markets Powell and Abe Drive Markets Reviewed by Marc Chandler on August 28, 2020 Rating: 5
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After much Build-Up, Could Powell be Anti-Climactic?

August 27, 2020
Overview:  The strong rally in US equities yesterday, with the fifth consecutive gain in the S&P 500 and a big outside up day in gold, failed to spur follow-through buying today.  Asia Pacific equities were mixed.  China, Australia, and India rose while most of the rest of the regional markets fell.  Europe's Dow Jones Stoxx 600 is around …
After much Build-Up, Could Powell be Anti-Climactic? After much Build-Up, Could Powell be Anti-Climactic? Reviewed by Marc Chandler on August 27, 2020 Rating: 5
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Hurricane Laura Lifts Oil Prices

August 26, 2020
Overview:  A consolidative tone has emerged after US equity benchmarks reached new highs yesterday.   The MSCI Asia Pacific Index had reached seven-month highs on Tuesday, but Japan, China, and Australian stocks saw modest profit-taking today.  European shares are recouping yesterday's minor loss, and US shares are flat.  Benchmark 10-year yie…
Hurricane Laura Lifts Oil Prices Hurricane Laura Lifts Oil Prices Reviewed by Marc Chandler on August 26, 2020 Rating: 5
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Stocks Extend Gains, while Yesterday's Dollar Recovery Stalls

August 25, 2020
Overview: Soaring US stocks, optimism about a vaccine, and the affirmation of the US-China trade agreement are buoying global equities today.  The MSCI Asia Pacific Index is near seven-month highs and was led today by more than 1% gains in the Nikkei and Kospi.  Europe's Dow Jones Stoxx 600 is around 0.5% firmer to approach the 200-day moving …
Stocks Extend Gains, while Yesterday's Dollar Recovery Stalls Stocks Extend Gains, while Yesterday's Dollar Recovery Stalls Reviewed by Marc Chandler on August 25, 2020 Rating: 5
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Markets Prove Resilient to Start New Week

August 24, 2020
Overview:  New virus outbreaks in Europe and Asia are not adversely impacting the capital markets today.  Global equities are firmer.  Some reports suggesting the US ban on WeChat may not be as broad as initially signaled helped lift Hong Kong shares, but nearly all the markets in the region traded higher.  Europe's Dow Jones Stoxx 600 is foll…
Markets Prove Resilient to Start New Week Markets Prove Resilient to Start New Week Reviewed by Marc Chandler on August 24, 2020 Rating: 5
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Upside Break in Currencies Foiled By Cautious Fed and Stronger PMI

August 23, 2020
The dollar fell to new lows against the euro, sterling, the Australian dollar, and the Swedish krona last week.  However, it was a head fake and the greenback quickly returned to its previous ranges.  The combination of the July FOMC minutes that dampened expectations for new initiatives, such as yield curve control or an increase in asset purchas…
Upside Break in Currencies Foiled By Cautious Fed and Stronger PMI Upside Break in Currencies Foiled By Cautious Fed and Stronger PMI Reviewed by Marc Chandler on August 23, 2020 Rating: 5
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