German WPI
Markets Waiting for the Proverbial Godot, I.E. Fed Easing
May 28, 2024
I found the market’s initially upbeat reaction to Fed Chairman Powell’s May 1st press conference puzzling and dismaying and in my opening post the following day wrote Investors had a somewhat more comforting reaction to Fed Chairman Powell’s press conference than I, fixating on the fact that he generally doubted there were be a need […] More
Another Upward Push in Long-Term Interest Rates Amid Geopolitical Risks and Stubborn Inflation
October 16, 2023
Diplomatic efforts to prevent a widening Mideast war hasn’t ended Israel’s retaliatory siege of the Gaza Strip. Clashes with Hezbollah to the North and Syria to the East have escalated. Iranian saber-rattling has picked up. In other political news over the weekend, New Zealand’s Labor Party government has been defeated by the moderately conservative National […] More
Investors Sensing the Beginning of the End of the Cycle of Rising Central Bank Interest Rates
April 14, 2023
The hope that central bank rates are nearing their peak continues to take some air out of the dollar’s tires. The weighted dollar index touched its lowest level overnight since April 21 of last year and so far has lost a tad over 12% since peaking seven months ago. Compared to Thursday closings, the dollar […] More
Euroland & Japanese GDP Released Before U.S. Consumer Prices
February 14, 2023
On this significant data release day, investors already have perused fourth-quarter GDP figures for many economies, British labor market statistics, and Swiss and Indian producer prices. Now they await the January U.S. CPI report. In financial market action, the dollar fell overnight by 0.6% against sterling, 0.4% versus the euro, 0.3% relative to the Australian […] More
Marking Time Ahead of U.S. Data and Xi/Putin Meeting
September 15, 2022
There’s been little financial market reaction from data released overnight. Investors are looking ahead to a slew of U.S. releases later today, including retail sales, import prices, industrial production, the Empire State and Philly Fed monthly manufacturing surveys, and weekly jobless insurance claims. Markets will also be keeping an eye on face-to-face talks later today […] More
Dollar Up Amid Weaker-Than-Forecast Data Around the World
August 15, 2022
The weighted DXY dollar index is up 0.6% and near its overnight highs. Gains compared to Friday closing levels have been even higher relative to the Canadian dollar (1.0%), New Zealand dollar (1.3%), Australian dollar (1.2%) and Mexican peso (0.7%). The dollar has risen 0.6% vis-a-vis the euro, 0.5% versus sterling and 0.4%relative to the […] More
Mixed Messages Amid Cross-Currents
March 14, 2022
There hasn’t been a consistent theme this Monday tying together overnight financial market developments. The biggest Covid threat in China since early 2020 has created heavy equity market selling in that country (-2.6%) and Hong Kong (-5.0%). Sources are claiming progress in diplomatic attempts to end the military conflict between Russia and Ukraine, but Russian […] More
Quiet Start to an Important Week
December 13, 2021
The dollar firmed o.2% overnight against the euro, Swiss franc and on a weighted basis as measured by the DXY index. The U.S. currency advanced more sharply versus the Canadian, Australian and New Zealand dollars — respectively 0.5%, 0.6% and 0.4% — but has not moved on net relative to Japan’s yen. Equity markets rose […] More
A Mostly Inconsequential Friday
November 12, 2021
The dollar marked time overnight. It’s weighted DXY value did not climb further after reaching highs on Thursday not seen since July 2020. The dollar is also unchanged from Thursday closing levels against the euro, yen, loonie, and kiwi, up 0.3% versus the Turkish lira and 0.2% against the Swiss franc but down 0.2% vis-a-vis […] More
Equities and Dollar Rise after Difficult Week
September 13, 2021
Equity markets in Europe have strengthened slightly more than 1.0% in Italy and Spain and by 0.7-0.9% in Germany, France and Great Britain. U.S. stock futures are up around 0.6%, but markets earlier in the Pacific Rim had given no warning as what was to come with Hong Kong’s Hang Seng index faltering 1.5% and […] More
