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Tag Archives: USD

The Jump in Rates Does Little for Sterling, the Canadian Dollar, and the New Zealand Dollar

Overview:  Weak growth impulses from China and a continued rise in energy prices greets the new week.  Equities are struggling.  Hong Kong, Japan, South Korea, and Taiwan fell in Asia Pacific activity.  Europe's Dow Jones Stoxx 600 is about 0.5% lower near midday, while US futures indices are also nursing small losses.  Crude is trading at new highs that puts November WTI above $83 and Brent above $85 a barrel.  Benchmark 10-year yields are mostly 4-6 bp higher.  A larger than expected jump...

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Greenback’s Gains Pared Mostly, but Extended Against the Yen

The Antipodeans and the Scandis led last week's move against the dollar, registering more than 1% gains.  The yen was the weakest of the major currencies, falling almost 1.75%, its worst week since March 2020.  The JP Morgan Emerging Market Currency Index initially declined to a new low for the year before recovering to snap a five-week slide and gain nearly 0.45%. Despite the six basis point gain ahead of the weekend, perhaps helped by a stronger-than-expected September retail sales report,...

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CAD Extends Gains, While Yen Slumps Further

Overview:  The S&P 500 and NASDAQ gapped higher yesterday and closed strong, helped by robust earnings reports.  This, coupled with TSCM earnings and Beijing easing mortgage lending, helped lift the MSCI Asia Pacific Index for the third consecutive session.  The returning Hong Kong market, Tokyo, and Taipei advanced more than 1% to lead the region.  The Dow Jones Stoxx 600 gapped higher for the second consecutive session, and if it can sustain its gains, it will be the best week in six...

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Greenback’s Pullback is Extended, but Getting Stretched

Overview:  Investors seem undeterred by the firm oil and gas prices and have taken stocks and bonds higher today.  Stronger risk appetites are also evident in the foreign exchange market, where the dollar is weaker against most currencies. The JP Morgan Emerging Market Currency Index is higher for a third day after falling for the previous six.  The strong recovery in US equities yesterday encouraged the MSCI Asia Pacific Index to extend its advance.  It has now risen in five of the past six...

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The Dollar Slips Ahead of CPI

Overview:  The US dollar is trading with a lower bias ahead of the September CPI report due early in the North American session.  Long-term yields softened yesterday and slipped further today, leaving the US 10-year yield near 1.56%.  European benchmark yields are 3-4 bp lower.  The shorter-end of the US coupon curve, the two-year yield is firmer. Equities are enjoying a slightly better tone, though Japan, Taiwan, and Australia's markets traded heavily in the Asia Pacific region. Hong Kong's...

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The Euro Remains Within Last Wednesday’s Range

Overview:  A weak close in US equity trading yesterday and the widening of China's "cultural revolution" for a two-month investigation of the financial sector stopped a three-day advance in the MSCI Asia Pacific Index.  China, South Korea, and Taiwan saw more than a 1% decline in their major indices.  All the major indices weakened.  South Korea's Kospi fell to a new marginal low for the year and took the won with it.  The Dow Jones Stoxx 600 in Europe is off around 0.2%, and US indices have...

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Rate Expectation Adjustment Continues

Overview:  Equities are softer and yields higher to start the new week.  The dollar is mixed.  Oil and industrial metals are higher. There are several developments over the weekend, but the focus seems to be on central bank action, inflation reports by the US and China, and the start of the Q3 earnings season.  Shares rallied in Japan and Hong Kong, but most of the other large markets in the region fell.  Recall that the MSCI Asia Pacific slipped last week, its fourth consecutive weekly...

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The Market Likes the Dollar and the Loonie even More

US rates and the dollar hardly responded to the disappointing jobs report.  The 194k rise in the nonfarm payrolls was the least this year, but of course, it is subject to revisions the way the August series was revised by more than 50% to 366k. One critical problem was that hiring by local governments for the start of the school season was less than usual, and with the seasonal adjustment, it turned into a decline. On the other hand, the private sector added 317k, the third consecutive month...

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The Dollar Turns Mixed Ahead of the Jobs Report

Overview:  The dollar is narrowly mixed and bid ahead of the jobs report. The Scandis lead advancing major currencies, while the yen and Australian dollar are the laggards. Among emerging market currencies, the Turkish lira and the Russian ruble are off the most (~0.45%), while the South African rand is the top performer (~0.45%).  The JP Morgan Emerging Market Currency Index has turned positive after posting declines in the previous four sessions. China's markets re-opened from the long...

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Hope Springs Eternal, or at least enough to Lift Risk Taking Today

Overview:  The animal spirits have been reanimated today.  Encouraged by the dramatic reversal in oil and gas prices, a deal in the US that pushes off the debt ceiling for a few weeks and talk of a new bond-buying facility in the euro area spurred further risk-taking today, ahead of tomorrow's US employment report.  The sharp upside reversal in US shares yesterday carried over in Asia and Europe today.  The Hang Seng, battered lately, jumped over 3%, and the Nikkei posted its first rise in...

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