German consumer confidence
Lower Bond Yields Takes Some Shine Off Dollar and Lends Stocks a Respite
October 24, 2023
Ten-year sovereign debt yields slid overnight by four basis points in Germany and Spain, three bps in Great Britain, France and Italy, and two basis points in Japan. The 10-year Treasury yield is holding onto yesterday’s closing level of 4.85%, 14 bps below last Thursday’s close. The weighted DXY dollar index and bilateral dollar value […] More
Dollar Softer After Yesterday’s Fed Rate Hike
July 27, 2023
The dollar in overnight trading lost 0.6-0.7% against the New Zealand and Australian currencies, 0.5% versus the euro and Swiss franc, 0.4% relative to the Turkish lira and 0.2% vis-a-vis the Canadian dollar. Prices for Bitcoin and WTI oil are up 0.5% and 1.0%. U.S. stock futures have strengthened, and 10-year sovereign debt yields are […] More
Slightly Softer Dollar but Higher Share Prices Ahead of FOMC Announcement
July 27, 2022
The FOMC statement due at 18:00 GMT today will be followed by Powell’s press conference 30 minutes later. Fed forecasts are not being updated at this meeting, and officials are widely expected to raised the fed funds target by 75 more basis points to 2.25-2.50%, which would more or less align such with what is […] More
A Market Pause While Waiting for Other Shoes to Drop
February 23, 2022
Continental European share prices are up 0.6-0.9% so far today in Germany, France, Italy, Spain and Switzerland. Futures trading in the S&P 500 and Nasdaq point to rebounds of 0.6% and 1.0%. In Pac Rim stock market trading, China and Indonesia closed up 0.9%, Hong Kong and Australian recovered 0.6%, and Japan didn’t trade due […] More
Dollar Leaped 1.2% Overnight to 19-Month High
January 27, 2022
Fed Chairman Powell’s implication that Fed tightening in 2022 will exceed market expectations lit a flame under the dollar, which overnight rose 1.2% on a weighted basis to its best level since June 28, 2020. The dollar climbed 0.7% against the euro and Swiss franc, 0.5% relative to the yen, kiwi and sterling, and 0.4% […] More
Marking Time as Drama at Jackson Hole and Kabul Unfold
August 26, 2021
The St. Louis and Kansas City Federal Reserve District presidents, who represent predominately Republican regions of the United States, publicly expressed their personal desires to see quantitative tapering begin this autumn, and Bullard of St. Louis added his hope that an interest rate hike be done before the end of 2022. The annual central banking […] More
Two-Day FOMC Meeting Ends Today with Likely Same Dovish Message
July 28, 2021
Against the backdrop of rising Covid-19 infections in the United States, this isn’t the time for the Fed to express a lot of concern about inflation or to show greater urgency as official begin to contemplate a plan to taper monetary stimulus. In the three days of July 25-27, new U.S. coronavirus cases averaged 57.3k […] More
Markets Looking for Clues to How Central Banks React to Spike in Inflation
May 27, 2021
In analyzing foreign exchange movement, the calendar year divides into three seasons, with the middle summer period –when trading volume oftentimes thins and dollar movements can be erratic and unrepresentative at times — lying between the U.S. Memorial Day and Labor Day weekends. The dollar is approaching the end of the winter-spring with a trivial […] More
After U.S. Pandemic Relief Package, There’s Been Little change in Dollar, U.S. Stock futures, or 10-Year Treasury Yield
December 22, 2020
The dollar shows no net overnight movement against the yen, Swiss franc or loonie. The greenback gained 0.4% against the kiwi, 0.3% versus the Aussie dollar and 0.2% relative to sterling but slipped 0.1% vis-a-vis the euro and Chinese yuan. Ten-year U.S. Treasury, German bund and Japanese JGB yields remain unchanged. Their British counterpart rose […] More
Investors Eyeing Three Threats
October 22, 2020
The uncertain U.S. election outcome now just twelve days away continues to have markets on tenterhooks. The final Trump-Biden debate is tonight at 21:00 EDT. U.S. Justice Department officials have found evidence of attempted cyber interference in the result by Iran and Russia. Worsening Covid-19 trends are a second source of investor anxiety. More than […] More
