Weekly Market Update
Post date: 06/09/2021 11:51 The Federal Reserve cannot be happy with the US payroll report for August. Weaker than expected employment growth shared the headlines with strong wage gains, suggesting that inflationary pressures will not be as transitory as it hopes. The US dollar promptly sold off even as US yields rose, a reversal of […]
Weekly Market Update
Post date: 23/08/2021 11:51 Jitters about the possible impact of continued COVID restrictions worldwide favoured the dollar last week. The consensus seemed to be that the impact on growth expectations would be relatively more muted in the US than elsewhere, and the greenback benefitted from that and also a hawkish tone in the minutes of […]
Weekly Market Update
Post date: 16/08/2021 13:19 A downward surprise in US consumer expectations would normally be shrugged off by financial markets. However, thin August trading meant that this second-tier data print late-Friday had an outsized impact on markets that had mostly ignored the much more critical CPI print a couple of days earlier. US rates gave up […]
Weekly Market Update
Post date: 09/08/2021 11:54 Going into the key Friday payrolls report last week, currencies traded with typical summer torpor, as many decision makers in trading floors are on vacation and critical news was scarce. All changed on Friday afternoon after a stellar jobs report out of the US provided evidence that the US economic recovery […]
Weekly Market Update
Post date: 02/08/2021 12:08 Easing concerns surrounding the spread of the delta variant and a generally dovish set of communications from the Federal Reserve sent risk currencies higher and caused the dollar to retrace most of its recent gains last week. Last Wednesday’s FOMC meeting delivered rather mixed messages, although investors latched onto Chair Powell’s […]
Weekly Market Update
Post date: 19/07/2021 12:32 The US dollar ended the week higher against every G10 currency, save the New Zealand dollar. The latter currency grabbed the spotlight as its central bank, the RBNZ, suggested it is ready to join Norges Bank as the first central banks to start hiking rates. This is a notable development and […]
Weekly Market Update
Post date: 12/07/2021 12:08 It was a relatively quiet week in G10 currency markets, but the real action was elsewhere. The correction in US government yields gathered pace on fresh concerns about the impact of new COVID variants on growth, and peaked on Wednesday on what looked like a buying panic that subsided later the […]
Weekly Market Update
Post date: 05/07/2021 13:57 Risk assets traded listlessly all week, though US equities managed to hit yet another all-time high. Rates dropped, and in this somewhat unusual environment the US dollar performed quite well, ending the week higher against almost all of its major peers. A pullback after the publication of a strong US payrolls […]
Weekly Market Update
Post date: 28/06/2021 10:41 Financial assets worldwide rallied, as US stocks broke to all new highs and commodity prices rebounded from their post-Fed sell-off. Currencies behaved much as they had before that Fed meeting. The dollar resumed its downward trend, safe-havens like the Japanese yen and the Swiss franc suffered and commodity-dependent currencies outperformed, particularly […]
Weekly Market Update
Post date: 21/06/2021 12:36 The Federal Reserve administered a serious corrective to general financial market ebullience last week. The ‘dot plot’ suggested that most members expect hikes to come no later than the end of 2023, from mid-2024 in the previous projections. Short-term rates in the US shot up higher and the dollar rallied, as […]