U.S. PPI

Weaker-than-Forecast European Industrial Production Lifts Dollar

April 9, 2021

The dollar rebounded 0.2% against its weighted index overnight from a 2-week low. One boost came from a five-basis point rise of the ten-year U.S. Treasury yield, even though other comparable sovereign debt yields also advances strongly. The dollar rose 0.4% against the yen, 0.3% versus the Mexican peso, 0.2% vis-a-vis the Swiss franc and […] More

Large Rise in Dollar and Sovereign Debt Yields

March 12, 2021

Yesterday was a momentous day for the Biden Administration. He signed the nearly $1.9 trillion American Rescue Plan on the one-year anniversary of last year’s Covid lockdown and then gave his first prime time address to the nation, setting a goals for vaccinations and a start of permissible family gatherings. Overnight, the trade-weighted dollar climbed […] More

Market’s Initial Reaction to American Rescue Plan Not Favorable

January 15, 2021

U.S. stock futures point to a decline of at least 0.5% at the open. Stock markets closed Friday with losses of 2.0% in South Korea, 1.1% in India, 0.9% in Indonesia, 0.8% in New Zealand, 0.6% in Taiwan and Japan. Equities are currently down about 1% in the U.K., Germany, France and Spain. The 10-year […] More

Stymied Effort to Get Fiscal Package and Covid Concerns Depress Stocks and Lift Dollar

December 11, 2020

While bipartisan consensus has emerged over the size of a U.S. fiscal stimulus (slightly above $900 billion), disagreement over the composition of relief and particularly over theĀ  issue of liability protection for businesses continues to prevent a senate vote before Christmas. There also is no trade deal yet between Great Britain and the European Union, […] More

Marginally Softer Dollar

October 14, 2020

The U.S. dollar edged down overnight by 0.3% against sterling, 0.2% relative to the Australian and New Zealand dollars, and 0.1% versus the yuan, Swiss franc and yen, while holding steady vis-a-vis the euro and loonie. The dollar price of gold firmed 0.5%. Stock markets in the Pacific Rim rose 0.9% in Indonesia, 0.7% in […] More

Some Sizable Financial Market Moves Overnight

August 11, 2020

The dollar lost 0.4% against the euro, Swiss franc, Australian dollar and Mexican peso. The U.S. currency also fell 0.5% versus the Canadian dollar, 0.3% relative to sterling, 0.2% vis-a-vis the Chinese yuan, and 0.1% against the kiwi but ticked 0.1% higher versus the yen. This time, dollar depreciation wasn’t correlated with a strengthening price […] More

Waves of Pessimism Persist on Numerous Fronts

June 11, 2020

The spreading of Covid-19 infections has intensified in several areas including big U.S. states like California, Florida, and Texas. Total U.S. reported cases eclipsed 2 million and at 2.066 million now represent 27.6% of the global total. As forecast by medical experts, reopening businesses has occurred at a clear cost, and this trade-off can be […] More

Politicians Between a Rock and a Hard Place, and Investors Lack Confidence that the Right Choices Will Be Made

May 13, 2020

Investors are concerned about the grim warnings from medical experts yesterday about the dangers of reopening business prematurely and without a plan for dealing with localized flare-ups of the pandemic. Hong Kong reported a new case after weeks without one. At the same time, frightening data continue to be reported, and worries are mounting that […] More

Worst Day Yet

March 12, 2020

Ironically on the one-month anniversary of the DJIA record high close, financial markets have experienced a calamitous session, and the catalyst for intensifying chaos was President Trump’s prime-time speech last night on the coronavirus pandemic. The tally of global cases stands now at 129,296 with 4,749 dead so far. Equity markets fell today by 11.7% […] More

Risk Preference Restored to Some Extent

February 19, 2020

EUR/USD is unchanged from yesterday’s closing level. The dollar is also flat against the yuan and kiwi, up most strongly versus the yen (0.8%) and then 0.3% relative to sterling. To the surprise of few, Prime Minister Boris Johnson is not proving to be as adept at governance as he was at running for election. […] More

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