Archive for: September, 2020

Post date: 28/09/2020 12:58 The overhang of speculative dollar shorts finally brought about a sharp countertrend move in the currency last week. Risking risk aversion, falling stock markets worsening COVID numbers in Europe provided the perfect background for a significant short-covering rally in the greenback, which rose last week against every major currency worldwide. The…

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Post date: 21/09/2020 13:13 While the Federal Reserve’s September meeting had been the focus of last week, the FOMC didn’t surprise investors and the market impact was muted. The modest rally in most emerging market currencies last week likely had more to do with positive economic news, particularly out of China, and the absence of…

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Post date: 14/09/2020 13:40 Like a sequel to a bad horror movie, the latest episode in the Brexit saga is reviving fears of a complete breakdown of Brexit negotiations and the attendant economic and financial chaos. The main victim was the Pound, down over 3% against every major currency worldwide. Aside from the volatility in…

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Post date: 07/09/2020 12:05 The US dollar bounced back, perhaps unsurprisingly given the stretched short dollar positioning in markets, yet another positive surprise from the US labour market, and the general correction of recent trends in financial markets. Unusually, however, key Latin American currencies managed to buck the usual correlations and actually rose against the…

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Post date: 02/09/2020 09:35 Last week capped an unusually busy month of August in financial markets. A combination of massive easing from the central banks around the world and guarded optimism about a COVID vaccine has brought the biggest August rally in US stocks in decades, but has been unambiguously negative for safe-havens and, more…

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