Weekly Market Update
Post date: 19/10/2020 13:22 Equities worldwide sold-off alongside credit, while investors flocked back to the safe, havens, primarily the dollar, the Japanese yen and the swiss franc. These moves were, however, modest in size and did not significantly change the trading patterns of the past few weeks. The euro is back in the middle of […]
Weekly Market Update
Post date: 13/10/2020 08:16 Renewed hopes of a significant fiscal stimulus package in the US brought about a relief rally in equities and credit worldwide, and most major currencies moved in sympathy, rising against the US dollar. Commodity currencies led the way in hopes of a faster economic recovery, and the laggards were the yen […]
Weekly Market Update
Post date: 08/10/2020 09:02 Most currencies’ sell-offs in the previous week were reversed in last week’s trading. While risk sentiment was not a clear driver in either direction, the always unpredictable asset-rebalancing moves at the end of third quarter hurt the greenback this time. The news late-Friday that Trump had tested positive for COVID and […]
Weekly Market Update
Post date: 28/09/2020 12:58 The overhang of speculative dollar shorts finally brought about a sharp countertrend move in the currency last week. Risking risk aversion, falling stock markets worsening COVID numbers in Europe provided the perfect background for a significant short-covering rally in the greenback, which rose last week against every major currency worldwide. The […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]