Euroland current account
Large Jump in European Long-Term Interest Rates
September 20, 2022
Today is the Astart of the FOMC’s sixth scheduled policy review in 2022. A third straight 75-basis point hike to a range of 3.0-3.25% is anticipated, with the announcement due Wednesday at 14:00 EDT (18:00 GMT). Meantime, officials at the Swedish Riksbank today exceeded street expectations with a policy interest rate hike of a full […] More
Dollar Gain Fueled by Higher Interest Rates, but Stocks and Bitcoin End Week on Very Sour Note
August 19, 2022
Ten-year sovereign debt yields soared overnight by 13 basis points in Germany and the U.K. and by 8 bps in the United States. A parade of remarks from Fed officials to dissuade any thought of an early end to aggressive monetary tightening was backed up by hawkish FOMC minutes released this week. The dollar appreciated […] More
Elevated Price Data, Weak Consumer Confidence, and Changing Central Bank Rate Expectations
July 20, 2022
The dollar had retreated in recent sessions but has rebounded 0.3% so far today against the euro and versus the DXY weighted index. The dollar also strengthened overnight by 0.2% against the Swiss franc, Chinese yuan and Turkish lira and by 0.1% versus sterling. The yen and Aussie dollar are steady, and the greenback dropped […] More
Investors Seeking a Floor
June 21, 2022
Bottom-fishing lifted share prices by 1.8% in Japan, Pakistan and India, 1.9% in Hong Kong, 2.4% in Taiwan, and 1.4% in Australia this Tuesday. Equities currently are up 1.2% in France and show a 0.7% rise in Italy, Germany, and Great Britain. U.S. stock futures have climbed around 1.7%. Mixed movement in the dollar saw […] More
Nothing but Red on the Screens
May 19, 2022
It’s no longer about the data, or the news for that matter. A self-perpetuating technically-driven downward dynamic has taken over financial markets. For the Nasdaq, the bear market threshold was breached a while ago. S&P futures are within a percent of bear market territory, and its only a matter of time before the Dow joins […] More
Dollar Strengthens With Fed Perceived Likely to Widen Disparity Between its Policy Stance and Those of Other Central Banks
April 22, 2022
Federal Reserve Chairman Powell and other Fed policymakers continue to go out of the way to encourage speculation that a series of 50-basis point interest rates are on the way. The European Central Bank is also shifting priorities but transitioning at a much slower pace. The Bank of Japan is dug in, committed to an […] More
More Data and Continuing Confusion Regarding Russian Intentions
February 18, 2022
The dollar rose 0.3% and 0.2% overnight against the Turkish lira and Japanese yen but fell 0.2% relative to the loonie, Australian dollar, Mexican peso and Chinese yuan. There’s been no net change against the pound sterling and Swiss franc, nor in the weighted DXY dollar index. Equities sold off heavily yesterday on fears of […] More
Highest British and German CPI Inflation in 357 and 354 months respectively
January 19, 2022
Inflation and Covid-19 infections remain elevated around the world. Investors at the moment are reacting mostly to the inflation numbers, believing that economic activity has become more insulated against the pandemic. The expectation that central banks will continue tilting away from stimulus lifted ten-year sovereign debt yields overnight by five basis pints in the U.K., […] More
Markets Looking Ahead to Next Week’s Central Bank Policy Meetings
September 17, 2021
The Federal Reserve heads a long list of central banks reviewing monetary policy next week. Among the others on tap are central banks in Japan, Turkey, the U.K., Switzerland, Sweden, Indonesia, Brazil, China, South Africa, Taiwan, Norway and the Philippines. Investors hope to get more clarification on when Fed will begin tapering bond purchases and […] More
Divergent Trends Continue in Equities (Down) and the Dollar (Up)
August 19, 2021
Equity markets on Thursday tumbled 2.7% in Taiwan, 2.1% in Indonesia and Hong Kong, 1.9% in South Korea, 1.4% in Singapore, 1.1% in Japan but just 0.6% in China and 0.5% in Australia. In Europe thus far, share prices are down over 2.0% in Germany and France and by more than 1.5% in the U.K. […] More
