January 2020 in Figures
January 31, 2020
The month of January presents another recent example of a time when key dollar pairs against the euro, yen, Swiss franc or sterling hardly moved on balance even as other financial markets underwent big changes. It was a month subjected to big distortions toward the end in the face of China’s rapidly spreading health crisis. U.S. and Canadian 10-year bond yields fell more than 40 basis points, while comparable Swiss, German and British yields fell by 24-29 basis points. Oil soared over 10%, and the price of gold went up almost 5%. Nevertheless, the dollar recorded strong appreciation against commodity-sensitive currencies like the loonie, kiwi, and Aussie dollar. None of the central banks in this monthly feature changed their policy interest rates, but monetary policymakers in Ukraine, Sri Lanka, Malaysia, South Africa, and Turkey all authorized cuts. Equities had been buoyed during much of the month in continuing reaction to the Phase I U.S.-Sino trade agreement, but stocks took a beating in the final week in the face of the escalating Coronavirus epidemic.
| 10-Yr Yield | 12/31/19 | 01/31/20 | Change in Jan |
| U.S. | 1.92% | 1.50% | -42 Basis Points |
| Germany | -0.19% | -0.44% | -25 |
| Japan | -0.03% | -.08% | -5 |
| U.K. | 0.81% | 0.52% | -29 |
| Canada | 1.70% | 1.27% | -43 |
| Switzerland | -0.54% | -0.78% | -24 |
| CB Policy Rate | 12/31/19 | 01/31/20 | Change in Jan |
| Fed funds target | 1.50/1.75% | 1.50/1.75% | 0 bps |
| ECB deposit rate | -0.50% | -0.50% | 0 |
| BOJ policy rate | -0.10% | -0.10% | 0 |
| BOE Bank Rate | 0.75% | 0.75% | 0 |
| Swiss 3M Libor | -1.25/-0.25% | -1.25/-0.25% | 0 |
| FX | 12/31/19 | 01/31/20 | Pct Chg in $ |
| EUR/USD | 1.1215 | 1.1091 | +1.1% |
| USD/JPY | 108.65 | 108.35 | -0.2% |
| USD/CHF | 0.9676 | 0.9631 | -0.5% |
| GBP/USD | 1.3247 | 1.3205 | +0.3% |
| AUD/USD | 0.7017 | 0.6694 | +4.8% |
| NZD/USD | 0.6730 | 0.6464 | +4.1% |
| USD/CAD | 1.2984 | 1.3236 | +1.9% |
| USD/CNY | 6.9632 | 6.9367 | -0.4% |
| Equities | 12/31/19 | 01/31/20 | Change in Jan |
| S&P 500 | 3228 | 3223 | -0.2% |
| Nasdaq | 8973 | 9151 | +2.0% |
| Djia | 28538 | 28254 | -1.0% |
| Dax | 13249 | 12982 | -2.0% |
| Nikkei | 23657 | 23205 | -1.9% |
| Ftse | 7542 | 7286 | -3.4% |
| Canada TSE | 17074 | 17318 | +1.4% |
| Swiss SMI | 10617 | 10628 | +0.1% |
| Commodities | 12/31/19 | 01/31/20 | Change in Jan |
| Oil, $ per barrel | 45.51 | 51.87 | +14.0% |
| Gold, $ per ounce | 1520.10 | 1591.00 | +4.7% |
Copyright Larry Greenberg 2020. All rights reserved. No secondary distribution without express permission.
Tags: 10-year sovereign debt yields, bond yields and stocks, foreign exchange, gold and oil prices
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