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Weekly Market Update

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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Weekly Market Update

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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Weekly Market Update

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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Weekly Market Update

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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Weekly Market Update

Post date: 24/08/2020 12:30 The recent sharp sell-off that we’ve witnessed in the US dollar against the euro since pretty much the end of May was brought to a screeching halt last week. One of the main rationales for the weaker dollar has, in our view, been the divergence in new virus cases between the…

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Weekly Market Update

Post date: 03/08/2020 17:20 The aggressive sell-off witnessed in the US dollar continued last week, with the currency posting its worst monthly performance in trade-weighted terms in ten years. Concerns surrounding still high US virus numbers, and the possibility of prolonged shutdown measures in the country, have been largely to blame, sending the dollar index…

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Weekly Market Update

Post date: 27/07/2020 12:19 The main theme in currency markets continues to be general US dollar weakness. The greenback dropped against all of its major peers last week. The move was notable because it took place in the absence of typical dollar-bearish trends elsewhere. Risk assets generally fell, and interest rate differentials between the US…

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Weekly Market Update

Post date: 20/07/2020 11:47 Last week had little in the way of new critical information on either the world economy, fiscal or monetary policy, or pandemic data. It is perhaps significant that the euro rallied in this environment, as it may indicate that the path of least resistance for the common currency is up. Not…

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Weekly Market Update

Post date: 13/07/2020 09:35 Risk assets worldwide had a mixed performance last week. However, it seems that the worsening pandemic indicators in the US are starting to take their toll on the greenback. With new cases hitting records almost daily, and deaths starting to tick upwards, the dollar fell against every other G10 currency save…

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Weekly Market Update

Post date: 06/07/2020 11:52 Risk assets worldwide continue to trade without a clear directional pattern, as stocks, credit and oil bounce around current levels. Economic news on most major currency areas continues to surprise to the upside. The latest burst of good news came from the US June employment report. Offsetting this optimism is the…

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