Weekly Market Update
Post date: 14/03/2022 12:32 The ECBs unambiguously hawkish messaging last week did not stop the euro from sinking to new lows as concerns mount over stagflation or worse. We also saw a significant rebound in Eastern European currencies led by the Polish zloty, as central banks in the region both raised interest rates aggressively and/or […]
Weekly Market Update
Post date: 07/03/2022 12:38 European currencies sink, dollar soars as the news from Ukraine get grimmer. The worsening humanitarian and security crisis brought about by the Russian invasion of Ukraine continues to buffet financial markets. There are volatile moves and a flight to safe havens everywhere, but European assets are being punished with particular severity, […]
Weekly Market Update
Post date: 21/02/2022 12:10 Inflation and central banks have taken a backseat to geopolitics in financial markets, and currency markets are no exception. Among the G10 currencies, the Japanese yen and the Swiss franc, the transitional safe-havens, rallied against the US dollar. It must be noted that commodity currencies, like the Australia and New Zealand […]
Weekly Market Update
Post date: 15/02/2022 07:25 Volatility has made a triumphant return to markets so far in 2022, as macroeconomic and geopolitical shocks continue to buffet markets. The January inflation report in the US delivered yet another jolt to investors, coming in far above estimates at 7.5% on the year. Fixed income markets worldwide sold-off on the […]
Weekly Market Update
Post date: 07/02/2022 11:54 We have been warning that the ECB’s plans to wait until 2023 before hiking rates were a pipedream in a world of rising inflationary pressures, and our view was fully vindicated last week. The massive upwards surprise in the Eurozone January inflation set the stage for Lagarde’s hawkish pivot. Understandably, the […]
Weekly Market Update
Post date: 31/01/2022 11:18 The Federal Reserve last week made it clear that it sees the US economy at full employment, that inflation is the biggest problem it faces, and that its priority is now to bring it down. The old correlations reasserted themselves in currency markets, as the dollar soared against all of its […]
Weekly Market Update
Post date: 24/01/2022 11:40 Last week saw the continuation of an interesting theme, in which emerging market currencies continue to hold their own even as stock markets in developed countries are shaken by bouts of risk aversion. US rates took a breather in their march higher, with the 10 year yield down 2 basis points. […]
Weekly Market Update
Post date: 10/01/2022 12:50 The most dramatic moves in financial markets last week took place in fixed income markets. Treasuries continue to get pummelled as the Fed steps away from the bid and no one else appears to be interested in buying them. What’s remarkable is how little the dollar has benefitted from the spike […]
Weekly Market Update
Post date: 20/12/2021 17:04 The Federal Reserve made it clear that it is increasingly concerned about inflationary pressures at its December meeting, and the dollar reacted accordingly. The greenback rose against every G10 currency last week, together with sterling, which joined the dollar rally, as the Bank of England whipsawed markets yet again by hiking […]
Weekly Market Update
Post date: 13/12/2021 14:08 Early data on the omicron variant suggests that it’s no more virulent than previous variants, and may in fact be less severe. Risk assets worldwide understandably rejoiced. Stocks, commodities and credit all rallied, helped along by the extremely stimulative settings in both monetary and fiscal policy. Currencies mostly followed suit, with […]