German IFO Business climate index

Record Low in Sterling and Other Financial Market Extremes

September 26, 2022

The British pound plunged overnight to an intra-day and all-time low of $1.0327. That’s down 25% from a 52-week high on October 20, 2021 and below the previous record low of $1.0345 in early 1985. Back then in an all-out fight to avoid the humiliation of sterling dropping below dollar parity, the Bank of England […] More

Markets Unsure How to React after Putin Sends Troops into Breakaway Regions of Eastern Ukraine

February 22, 2022

Investors don’t know if Putin’s move is the opening round of a full-scale invasion. Putin’s provocation has elicited push-back from Western allies, who aren’t waiting for the Russian leader to expose all his cards. Germany has halted work on the Nord Stream 2 oil pipeline. U.S. President Biden is tightening economic sanctions against Russia. Equities […] More

Weather Extremes, Covid, and Sino-U.S. Government Talks on Investors’ Minds

July 26, 2021

The starting round of high level talks between China and the United States has not gone well. Much of the world including both those countries are experiencing extreme weather conditions this summer. Talk of emerging from the Covid pandemic is looking premature as reported infections rise in many places. In the United States, such reached […] More

Signs of Economic Recovery and Monetary Policy Patience

June 24, 2021

Overnight dollar movements were mostly down but slight in magnitude. The U.S. currency slid 0.4% against the Mexican peso, 0.3% relative to the New Zealand dollar, 0.2% versus the yen, and 0.1% against the euro, Aussie dollar, loonie and yuan. The dollar also rose 0.5% versus the Turkish lira and 0.3% against sterling. Relative to […] More

Dollar Slips to Lowest Level Since First Week of 2021

May 25, 2021

Several Fed officials speaking yesterday reaffirmed commitment to current stance for some time longer. In response, the dollar fell 0.4% against the euro, 0.2% versus the Swiss franc, Australian dollar, Chinese yuan, Mexican peso, and its weighted index, and by 0.1% relative to the loonie and sterling. The dollar also firmed 0.1% against the Japanese […] More

Long-Term Interest Rates Edge Higher

April 26, 2021

Ten-year sovereign debt yields this Monday are three basis points higher in the U.K. and United States, two bps higher in German and up a basis point in Japan. The dollar is marginally softer but above its overnight low on a weighted basis. The key EUR/USD and USD/JPY relationships are unchanged. The peso is also […] More

Dollar Ending Week on an Up-Note But Euro Steady

March 26, 2021

The dollar overnight appreciated another 0.35% on a trade weighted basis, but strength wasn’t even this time. The dollar rose 0.6% against the yen and 1.0% relative to the Turkish lira. The key EUR/USD relationship is unchanged, and the greenback has slipped 0.4% versus the New Zealand and Australian dollars, 0.3% vis-a-vis the Canadian dollar […] More

Risk Aversion on Adverse Coronavirus News

October 26, 2020

The week before the U.S. election opened with equity markets on the defensive, led by drops of 2.4% so far in the German Dax, a 0.8% decline in China’s Shanghai Composite index, and losses of 0.7% in France, Italy, and South Korea. There are holiday closures in New Zealand for Labour Day, Austria for National […] More

More Evidence of Deep and Global Economic Downturn

April 24, 2020

Dollar movements on the final day of the week have been comparatively modest and somewhat mixed against other major currencies. The price of West Texas Intermediate crude oil extended its rebound but is currently still down 7.6% since last Friday’s close. Gold is little changed. Further substantial declines of 9-10 basis points have occurred today […] More

Getting Down to Crunch Time in Sino-U.S. Trade Talks

February 22, 2019

Stocks fell Thursday on some disappointing U.S. economic data but have rebounded Friday, as investors are choosing to believe that Sino-U.S. trade talks will reach an agreement averting an escalation of the tariff war.  Share prices rose 1.9% in China, 1.2% in Hong Kong, and 0.5% in Australia, and European bourses are up by 0.5% […] More

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