Big news is the drop in global equity markets, perhaps as confluence of recent headlines being priced in. Dollar does not experience strengthening from a flight to quality other than a slight rebound effect on Friday. Tbills experience similar weakness. Indicates market fears being driven by US factors.
FED raises rates Wednesday. Move relatively priced in but saw some gains in DXY. Developed Economy rates have grown relatively on par with US rates, but Japan lagging slightly. SP500 ends slightly lower, perhaps on fears of escalating trade war combined with the end of easy credit. Oil breaks $80/barrel. Credit Yields down.
Oil approaches $80 a barrel, oil producers seem to be treating as ceiling for now. Dollar continues to decline after summer growth but experiences gains in last 2 days of the week. 10 Yrs flattened on the week. Pound drops after more bad news on Brexit negotiations, reversing some of the gains from recent weeks. … Read more
DXY gains on the week as strong jobs and wage growth finally creates upward pressure on 10 year Treasuries. Rates going up in most developed markets, continuing the tightening that’s occurring in emerging markets. Equities like the SP500 are down on the week, perhaps due to fear that the economic conditions will increase the conviction … Read more
The SP500 hit new highs this week as we enter the longest bull run in market history, as defined by a period without a market correction greater than 20%. Despite the equity market strength and the confirmation we received from the Jackson Hole summit that rates hikes we continue, the US yield curve continued to … Read more
Week ending 8/17/2018 Dollar dropped this week, perhaps as concerns that the currency volatility in Turkey would spread to emerging markets calmed. Several major US retailers announced earnings and despite some beating expectations, the industry outlook remains negative. The SP500 is near its 6-month high, as the 10 Yr treasuries fall back towards February levels. … Read more
Dollar started the week strong and ended strong, capping off a week of directional momentum in the currency markets. The recent renewed bullishness of US equities (on strength of earnings) and turbulence in the global markets is making the dollar attractive relative to other markets. Updated weekly. Prices reflect daily market closings for week ending … Read more