U.S. and Canadian trade balances

Service Sector Purchasing Manager Surveys and Some Central Banking Developments

April 5, 2023

The dollar overnight traded 0.6% higher against the Australian dollar, 0.5% lower versus the Japanese yen, and held steady on balance against the euro and Canadian dollar. Equities closed down 1.7% and 0.7% in Japan and Hong Kong and up 0.8% and 0.6% in India and South Korea. In Europe, the German Dax is down […] More

Powell’s Hawkish Message Received Along With Some Data Surprises

March 8, 2023

TINA is the acronym for there-is-no-alternative, and that is the unflinching stance that the Federal Reserve wants to convey regarding its priority to restore in-target two percent inflation whatever such takes. In day one of Chairman Powell’s semi-annual testimony before congress yesterday, that message was expressed more forcefully than before including the surprise hint that […] More

U.S. Data Out Today Supports Fed Message that a Rate Cut in 2023 is Highly Doubtful

January 5, 2023

The 2022 dynamic of progressively tighter Fed policy supporting the dollar and depressing stocks and bonds remains intact. Minutes from the December FOMC meeting project higher interest rates persisting for some time and indicates that market valuations that imply an initial rate cut late in 2023 are premature. Although inflation cooled in recent months in […] More

Equity Retreat Extended and Dollar Narrowly Mixed

December 6, 2022

Overnight dollar movements include a rise of 0.4% against the loonie coupled with a drop of 0.4% against the Swiss franc; an uptick of 0.2% relative to the yen versus a 0.2% downtick against the euro, dips of 0.1% vis-a-vis the Australian and New Zealand dollars, and no net change against sterling. More significant change […] More

Equity Rout Paused but Rise of Commodity Prices Continues

March 8, 2022

The price of Nickel soared more than 200%, forcing that exchange to stop trading. Prices for silver (+2.6%), WTI oil (+2.5%), wheat (+1.2%) and gold (+0.8%) climbed further as well. The euro recovered 0.3% overnight, causing the DXY dollar index to fall almost 0.3%. The greenback gained 0.4% against the yen, 0.5% versus the Australian […] More

Narrowly Mixed Dollar… Tuesday Data Menu Features GDP

June 8, 2021

The dollar slipped overnight by 0.4% against the Mexican peso, 0.3% relative to the Turkish lira and 0.2% versus the Swiss franc but rose but 0.2% versus the kiwi and sterling and 0.1% relative to the euro, yen, and Australian dollar. There’s been no net change in the Chinese yuan or Canadian dollar. Ten-year sovereign […] More

Little Change in Dollar or Share Prices; More PMIs Attest to Rising Inflationary Pressure

April 7, 2021

The dollar advanced overnight by 0.6% against the Turkish lira as well as 0.4%, 0.3% and 0.2% against the Australian, New Zealand and Canadian dollars. But the greenback otherwise held steady against the yen and fell 0.1% versus the euro and on a weighted basis. Share prices in the Pacific Rim closed up 0.9% in […] More

Upward Bounce in the Dollar

September 3, 2020

Dollar advances today amount to 0.6% against the Australian dollar and sterling, 0.5% versus the Canadian and New Zealand dollars, and 0.3% relative to the yen and euro. A new high in the dollar was touched against Turkey’s lira after investors learned that Turkish reserves have drained to a 15-year low. The Russian ruble is […] More

Higher Bond Yields

November 5, 2019

Ten-year sovereign debt yields advanced by another five basis points overnight in Japan and the United States, by 3 bps in Germany and 1 basis point in Great Britain. The dollar fell 0.4% against the Chinese currency, edging back marginally under 7.0 yuan per dollar. Elsewhere, the dollar advanced 0.4% against the Swiss franc and […] More

Some Geopolitical Relief but Not Out of the Woods

September 4, 2019

The British Parliament passed a bill late yesterday by a 328-301 margin to stop Prime Minister Johnson from engineering a no-deal breakaway from the EU on October 31. BoJo, as he is known, is expected to lose more votes today and to call snap elections for October 14th. It’s not clear the Parliament will authorize […] More