U.S. trade balance

More Central Bank Rate Hikes and Dollar Rises to a Two-Week Weighted High

November 3, 2022

Big jumps in the dollar are continuing in the wake of yesterday’s sobering Federal Reserve press conference. The greenback is stronger than Wednesday closing levels by 1.5% against sterling, 1.0% versus the kiwi, 0.9% relative to the Swiss franc and Australian dollar, 0.6% vis-a-vis the euro and Canadian dollar, and 0.3% against the yen. Since […] More

Convergence of Fed-ECB Interest Rate Biases Sends Dollar Lower

October 26, 2022

The dollar has prospered throughout 2022 largely because the Federal Reserve had been seen as more aggressive in raising interest rates than the European Central Bank and other central banks. Today’s main market theme is that perhaps the monetary policy gap will not be as wide as thought previously. The ECB Governing Council will likely […] More

Yuan Strengthens and Iran Financial Market Impact Lessens

January 7, 2020

The Chinese yuan is up 0.5% against the dollar, its biggest daily advance in just over a half year. A Phase I Sino-U.S. deal is expected to be signed soon. The approaching Lunar New Year holiday is driving demand for cash in China. More than 30 people died and many more were injured in a […] More

A Busy Day on Several Fronts

December 5, 2019

U.S. House of Representatives Speaker Pelosi has instructed Democratic members to draw up articles of impeachment against President Trump. Revised third-quarter GDP data for the euro area left the quarterly growth rate unchanged at 0.2%, which matches the second-quarter result. Consumption, business investment, and government spending made positive growth contributions, but net exports and inventories […] More

Continuing Move Into Riskier Assets

April 17, 2019

Share prices in Europe and Asia mostly rose. So did 10-year sovereign debt yields and the price of oil. The dollar is unchanged on net against the yen and sterling. The greenback lost 0.5% against the Canadian dollar, 0.3% relative to the Australian dollar and yuan, 0.2% versus the euro and peso, and 0.1% against […] More

Tuesday-Wednesday Rundown

March 7, 2018

During these past two days, the dollar dropped over 1.0% against the won, 0.7% versus the Aussie dollar, 0.6% relative to the euro, 0.5% vis-a-vis the Canadian dollar 0.4% against sterling but just 0.1% versus the yen. U.S. stocks closed down today and are below Monday’s close. British, German and Japanese equities also lost net […] More

Lessening Market Impact from Spanish Political Strains

October 5, 2017

Spain’s stock market has rebounded 1.7% after government officials in Madrid took a hard line against negotiations with Catalan. In contrast, investors have become even more worried about the possibility that British Prime Minister Theresa May may before yearend get the gong from hard-line Brexiters in her own Conservative Party. The dollar advanced 0.9% against […] More

Dollar and Treasury Yields Lifted by U.S. Jobs Report

August 4, 2017

The dollar rebounded sharply, advancing 1.0% against the euro, 0.8% relative to the yen and sterling, 0.7% versus the loonie, 0.6% vis-a-vis the Australian dollar, 0.5% against the Swiss franc and kiwi, 0.3% versus the peso and 0.2% relative to the yuan. The 10-year Treasury yield climbed six basis points to 2.28% and exerted coattails […] More

Blame It on the British: Bond Yield Distress Extended

July 6, 2016

The 10-year Treasury yield touched a fresh low for the move earlier today of 1.318%.  It closed on June 23 at 1.75% just before the shocking Brexit vote result became known.  The 10-year Japanese JGB is off two basis points at negative 0.27%.  The sovereign debt yields in Germany and Switzerland are also below zero. […] More