Euroland current account

Contrasting Concerns Among Central Bankers and Financial Market Investors

January 19, 2023

As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More

Dollar and Sovereign Debt Yields Lower, while Equities Rebound

November 22, 2022

The dollar  fell overnight  by 0.8% against the Swiss franc, 0.5% versus the yen and sterling and 0.3% relative to the euro, Aussie dollar and loonie. Ten-year sovereign debt yields dropped six basis points in the U.S., four bps in the U.K. but just a basis point in Germany. The DOW and S&P 500 are […] More

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

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