Weekly Market Update
While the euro, dollar and sterling fail to move much against one another, emerging market currencies once again took the spotlight last week. Latin American currencies in particular built further on their torrid performance so far in 2023, buoyed by the return of risk appetite to financial markets, which is lifting risky assets generally. News […]
Weekly Market Update
The resilience of the US economy continues to confound expectations. It is weathering well the rate increases so far, and optimism has grown further now both the banking crisis and the debt ceiling impasse are receding. The incipient signs of labour market easing have not panned out, and income, spending and (unfortunately) price pressures continue […]
Weekly Market Update
The US dollar was once again broadly stronger last week, ending it modestly higher against most of its major counterparts. We contested that the move upwards in the greenback in the week previous was likely driven by nothing more than stretched investor positioning and profit taking. The catalysts behind the rally last week were far […]
Weekly Market Update
The sharp move upward in the US dollar last week was somewhat counterintuitive, as inflation and wage data out of the US were both reassuring for the Federal Reserve and consistent with a slow downward trend in inflationary pressures. The main suspect is likely to be market positioning. After the relentless move from below parity […]
Weekly Market Update
Safe havens suffer as optimism returns to market Typical market correlations broke down last week, after the forced merger of Credit Suisse with UBS had allayed European banking concerns only temporarily. The dollar fell against every major currency except the Japanese yen, as investors skewed safe havens and rediscovered their appetite for risk. As far […]
Weekly Market Update
Lingering bank concerns drive down yields and US dollar. Typical market correlations broke down last week, after the forced merger of Credit Suisse with UBS had allayed European banking concerns only temporarily. A ‘dovish hike’ from the Federal Reserve, and fears of a reduction in bank credit in the US, drove Treasury yields sharply lower. […]
Weekly Market Update
G10 currency trading was fairly uneventful last week, as the dollar had a mixed reaction to the relentless march higher in interest rates, as risk assets took it in stride. Emerging market currencies were the stars last week, led by the Latin American ones. The reopening of the Chinese economy after the end of COVID […]
Weekly Market Update
The recent rally in the US dollar eased against most major currencies last week, as markets somewhat tempered bets in favour of higher Federal Reserve rates. The week was mixed overall. The dollar rose against most emerging market currencies following the surge higher in US yields, although it ended lower against almost all of its […]
Weekly Market Update
The ‘big three’ central bank meetings came and went last week, rates were hiked in accordance to market expectations, and the market interpreted communications as generally dovish. However, in currency markets these announcements were overshadowed somewhat by the US labour market report for January, which blew away all expectations and sent interest rates and the […]
Weekly Market Update
Chinese authorities are suggesting that they intend to catch up with the time lost during the zero-COVID experiment by buoying consumption, and the direct beneficiaries of higher Chinese demand are celebrating. Commodity currencies, like the Australian, New Zealand and Canadian dollars were the best performing G10 currencies last week, while the rest of them traded […]