Weekly Market Update
Post date: 29/03/2021 11:53 The move lower in the euro that we have been anticipating during most of March so far began to reassert itself again last week. With virus cases rising and lockdowns either being extended or reintroduced in most of Europe’s major nations, investors are growing increasingly pessimistic about the bloc’s near-term outlook. […]
Weekly Market Update
Post date: 22/03/2021 13:02 Last week, the Federal Reserve reiterated its openly inflationist stance when Chair Powell insisted that rates will stay at zero even if inflation overshoots the target. Treasury bonds continued to sell-off as market expectations of inflation rose to eight-year highs. Remarkably, risk assets and emerging market currencies took the events relatively […]
Weekly Market Update
Post date: 15/03/2021 13:07 While investors pay increasing attention to the rising volatility in rates markets, currencies continue to trade off risk appetite and commodity prices, primarily. The historical correlation between higher yields on US treasuries and a stronger dollar is not quite asserting itself as of yet, remarkably. European yields actually went down for […]
Weekly Market Update
Post date: 08/03/2021 11:01 The severe sell-off in the US Treasury market accelerated last week as economic news continues to suggest a fast improving economy and the massive Biden stimulus package secured approval in the US Senate. While the short end of the interest rate curve remains securely anchored by the Fed’s explicit promise to […]
Weekly Market Update
Post date: 01/03/2021 10:47 The wild week in bond markets had a clear spill over into foreign exchange last week. A poor auction of Treasury bonds in the US was the proximate catalyst for a sharp move higher in yields. Bond investors have clearly been spooked by the combination of inflation-friendly monetary policy and the […]
Weekly Market Update
Post date: 22/02/2021 11:30 The holiday-shortened week in the US saw a continuation of the market tendencies seen since the beginning of the year. Sovereign debt sold-off as investors balk at returns that are well below projected inflation, even as inflationary pressures build. Meanwhile, financial assets worldwide generally rose, though the move was uneven. Equities […]
Weekly Market Update
Post date: 15/02/2021 10:55 Equities and credit assets rose, commodity prices soared, and the dollar was weak, though its moves were subdued. Powell made it clear that the Federal reserve will err on the side of stimulus for the foreseeable future, and the Biden administration appears to be following suit, bringing pressure on the ECB […]
Weekly Market Update
Post date: 08/02/2021 14:07 As risk assets worldwide continue to print fresh records, led by US stocks, the pound has been the big winner so far in 2021. The rollout of the COVID vaccination programme has led to every other major country in the world, and the currency performance reflects high hopes the UK will […]
Weekly Market Update
Post date: 01/02/2021 12:34 The ECB last week reacted in the usual belated fashion to the sharp rise of the euro and its potential effects on the Eurozone inflation and economic recovery. For now, the impact on the currency has been muted, but we expect to see many variations on the theme that currency has […]
Weekly Market Update
Post date: 25/01/2021 11:59 In a continuation of recent trends, risk assets worldwide mostly rose and the dollar mostly fell last week. The catalyst this time appeared to be the senate confirmation hearings for Janet Yellen as Treasury Secretary. In them, she made the case for a much more aggressive fiscal spending in the US, […]