Tuesday , January 26 2021
Home / Tag Archives: $MXN

Tag Archives: $MXN

The Dollar Slips to New Lows against Sterling and the Mexican Peso

Overview: Global equities are moving higher today.  Led by continued strong buying of Hong Kong shares, the MSCI Asia Pacific Index rose to new highs.  The Hang Seng is up 6% this year and is approaching the 2019 record high.  Australia's shares set a new record today.  Japan and Taiwan bucked the trend.  Europe's Dow Jones Stoxx 600 has recouped yesterday's 0.2% loss plus some, led by information technology and consumer discretionary sectors.  The S&P 500 and NASDAQ futures point to a...

Read More »

December Monthly

The end of the annus horribilis is at hand, and despite the hard winter ahead for the northern hemisphere, there is a sense of optimism for the new year.  The first generation of vaccines for the coronavirus appears promising. The US has elected as president a person who is within the internationalist tradition.  The UK's standstill agreement with the EU will still expire at the end of the year, but many are still hopeful a last-minute deal can still be struck. China has entered into the...

Read More »

Brief Summary Of Where Things Stand Getting Closer to Q4

Flash PMI’s for September 2020 around the world add more evidence to the possibility of a global slowdown during the economy’s all-important rebound quarter. Q2 was the big downturn, and so it always going to be Q3 where the bounce back would be sharpest. While that has definitely been the case, concerns are mounting for what might follow in Q4. As we’ve seen elsewhere, in too many places, July. It showed up in Europe again; yesterday IHS Markit reporting a sharply lower composite PMI for...

Read More »

Speculative Positioning in Selected Currency Futures

With the media playing up the US dollar's negatives, one would think speculators are short the greenback like there is no tomorrow.  Yet a review of the Commitment of Traders report that covers the week through last Tuesday, August 4, shows that this is not really the case.   Below the speculative positioning of four currency futures is reviewed.  Only the euro stands out in terms of extreme positioning.  Speculators are still net short sterling and the Canadian dollar.  The net long...

Read More »

The Dollar and Equities are Finishing the Week on Firm Footing

Overview: A 9.8% contraction of the Chinese economy in Q1 did not derail investor optimism today, which saw Asia Pacific stocks rally strongly after Gilead reported very preliminary positive testing of its drug to fight the coronavirus and plans to re-open are developing. Japan's Nikkei and South Korea's Kospi surged more than 3%. The MSCI Asia Pacific Index, Europe's Dow Jones Stoxx 600, and the S&P 500 are posting their first back-to-back weekly gains since the first half of...

Read More »

Where can Mexico Go?

In the old world that ended sometime last month, the peso was a king. It was among the strongest currencies in the world and appreciated against the US dollar for the past three years. It appreciated nearly 10% against the greenback, which itself was rising against most currencies.   Mexico is poorly placed to deal with the coming economic shock. The peso has already fallen nearly 30% in the five-week slide, and the full appreciation of the tragedy is not yet discounted.   First,...

Read More »

Investors Continue to Look Past the Coronavirus

Overview: The capital markets are heading into the weekend, still trying to look past the coronavirus despite the new cases in Hubei. Tokyo was a notable exception in the Asia Pacific region, as the other major equity markets, like in Hong Kong, China, Taiwan, South Korea, and Australia, advanced. The MSCI Asia Pacific Index rose for the second week. European shares are little changed, and the Dow Jones Stoxx 600 has risen by about 5% over the past two weeks. US shares are firm, and the...

Read More »

Markets Turn Quiet Ahead of Central Bank Meetings

Overview: The capital markets have turned quiet as the year-end positioning drives prices in lieu of fresh developments. Equities in the Asia Pacific region were narrowly mixed.T he smaller markets in Asia performed better than the large bourses of Japan, China, and Korea, which eased. European equities are off to a firm start, and the Dow Jones Stoxx 600 is consolidating near the record high set Monday. US shares are also trading a little higher, and the S&P 500 is within spitting...

Read More »

October Monthly

Trade,  central bank policy, and Brexit dominated the investment climate in September. The US-Chinese trade conflict stopped escalating.  Although face-to-face talks are planned in October and the list of exemptions from the punitive tariffs has increased (US soy and pork, for example, are now exempt as are 10 components of Apple’s Mac Book Pro from China), the tensions remain high.  The conflict is more than about more than trade.  It is also about market access, unfair subsidies, and...

Read More »

Markets Limp into the Weekend with the Euro Languishing at New Lows and Sterling under Pressure

Overview:  Equities remain under pressure. The MSCI Asia Pacific Index lower today, though Chinese and Australian shares were firmer.  It is the second consecutive week the benchmark has fallen.  European equities are firmer, but not enough to offset the losses earlier this week and are set to snap a five-week advance.  US shares are firmer, and the S&P 500 needs to gain about 0.5% today or record a back-to-back weekly decline.  Core bond yields are a little firmer today paring this...

Read More »