Mon, Mar 01, 2021 @ 12:44 GMT
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The Growth Of The Dollar Index Continues In Expectation Of Te Report On The Labor Market This Week

On Friday, the market moved synchronously in favor of the dollar. Gold broke through the lows on November 30 and consolidated below $1,760 per troy ounce. The Bloomberg Commodity Index, which consists of 23 commodities, decreased the most since April, as the dollar's strength reduced the interest in commodities...

Markets Breathe A Sigh Of Relief

Equity markets are trying to recover from last week’s falls after rising global bond yields took many investors by surprise. US 10-year Treasury yields climbed to a high of 1.61% on Thursday, representing a 70-basis point rally from the beginning of the year or a 77% gain. Japan’s central...

Weekly Economic & Financial Commentary: The U.S. Economy Continues to Start 2021 on a High Note

U.S. Review The U.S. Economy Continues to Start 2021 on a High Note In January, personal spending increased at a robust 2.4% pace, while personal income soared 10.0%. The core PCE deflator rose 0.3% during the month and 1.5% over the year. Fed Chair Powell testified in front of Congress...

Weekly Focus – Spill Over from Continuing Yield Increase

Yields continued up this week; US 10yr government bond yields reached a one-year high. Oil prices increased above USD67/barrel and industrial metals, particularly copper, have accelerated further as well, weakening safe haven currencies like JPY and CHF. This development has been backed by more positive vaccine news and a...

NY Fed Williams Expects The Strongest GDP Growth In Decades This Year

Markets It appeared that here is a thin line between market euphoria about a quick economic recovery fueled by intensive cooperation between fiscal and monetary policy on the one hand and fear that central banks will have to retrace on their commitment to support this cooperation for a prolonged period...

Yield Surge Triggers Market Drama

US futures point to more declines. 10-year yields moderating after 1.60% breach. Bond market’s message outshining Fed rhetoric for now. Gold extends 2021 decline. The surge in Treasury yields sent shockwaves across broader markets on Thursday, with 10-year yields briefly breaking the 1.60% mark to hit a new one-year...

Rising Real Rates Hit Markets

Market movers today This morning we get Q4 GDP details from both Sweden and Denmark. We know what growth was based on the indicator but not what drove it. In Norway, we expect the unemployment rate was unchanged at 4.0% in February. In the US, monthly private consumption as...

Yields Up, Stocks Down, Dollar and Yen Rebound

US stocks suffered steep selling overnight on sharp rally in treasury yields, and the selloff carried forward to Asian markets. Yen and Dollar ride on the turn in risk sentiments and rebounded, together with Dollar. Australian and New Zealand are in deep pull back, together with Sterling. Euro and...

10-yr yield breaks 1.5 after awful debt auctions, heading to 2%?

The fast acceleration in US yield was a major shocker to the markets overnight. Fed officials are generally unconcerned with recent rally. They even sounded upbeat about the development in the bond markets. But some analysts pointed to the poor demand in the "awful" bond auctions overnight. Now that...

Yield Shield Peeled

The broader market is struggling with weather to interpret rising yields as a sign of economic improvement, inflation or dislocation in the bond market. On Thursday, an ugly rise in rates (10 yr hit 1.60%) led to a big reversal in risk with CHF leading and AUD lagging. The...

With Powell Out the Way, Dollar Turns to Data Barrage

The testimonies by Fed chief Powell before Congress confirmed the central bank won't overreact to any inflation episode but didn't reveal anything new. The spotlight now falls on the next batch of US data at 13:30 GMT Friday. The dollar has stopped behaving entirely as a safe haven and...

Powell is Head and Shoulders above the Rest: DXY, EUR/USD

Fed Chairman Jerome Powell continued with his dovish rhetoric yesterday when he testified on day 2 regarding  Monetary Policy in front of Congress.  The theme from the Federal Reserve is that they are in no hurry to raise interest rates or take their foot off the pedal regarding stimulus. ...

Stocks Lick Wounds, Dollar Retreats As Fed Restores Calm

Stocks claw back losses amid Fed reassurances and vaccine news Commodity currencies continue to rampage, yen and franc in agony Pound loses some steam after Chancellor warns of tax increases Fed tranquilizer gun restores calm All that was needed to restore order in financial markets were some soothing words from...

Powell Puts Recovery Trade Back On Track

The inflationary wobbles in global stock markets were partially put to rest overnight, as the Federal Reserve Chairman, Jerome Powell, continued soothing frazzled nerves during his second day of testimony on the Hill. Apart from highlighting something already mentioned here previously, that cost/push inflation as the global recovery gathers...

The Bull Run Still Has Legs Despite Inflation Concerns

Inflation threats and rising bond yields have been the dominant market topics over the past several weeks. Many investors fear the latest selloff in bonds and rise in long term interest rates will put an end to the fastest and strongest bull market in history. Significantly, it is not only...

If There Is A Will, There Is A Way

During his two-day testimony before the Senate, Federal Reserve (Fed) Chair Jerome Powell did everything in his power to avoid the sticky question of rising inflation expectations. He talked about ‘some elevated prices’, such as chip shortages that could lead to higher car prices. But he simply refused to...

Team Risk-On Extends Leads as DOW Hits New Records

As DOW hit another record with strong rise overnight, team risk-on is extending the lead over team risk-off in the currency markets. New Zealand Dollar is having a mild upper hand over Australian, Canadian and Sterling for now. But the Loonie is trying to catch up with rising oil...

DOW hits new record on Fed Powell assurance, NASDAQ also rebounds

DOW surged to new record high overnight as markets took Fed Chair Jerome Powell's message from the semiannual testimony clearly. That is, Fed is in no way near stimulus exit. The economy is "a long way" from Fed's employment and inflation targets. He reiterated that Fed "will not tighten...

Fed Clarida: Prospects have brightened and downside risks diminished

Fed Vice Chair Richard Clarida said in a speech, there have been some weaker than expected data in recent months. Services spending remained "well below pre-pandemic levels". Improvement tin labor markets has "slowed notably", with "true unemployment rate" closer to 10% level. Core PCE inflation was just running at...

Powell, Markets, Oil, Gold, Bitcoin

US futures are flat while Europe is seeing a small recovery after trading in the red ealier in the session. We're going through a very choppy period in the markets, with investors uncertain how to read the movements we're seeing in bond markets. The curve is steepening and investors are...

USD Stabilises As Risk Appetite Changes

The USD gained against safe haven CHF and JPY and tended to lose ground against commodity currencies AUD and CAD and the riskier GBP. It should be noted that Fed Chairman Jerome Powell yesterday repeated before the Senate in his testimony that rates are to remain low and that...

Powell Soothes Nerves

Central banks send dovish message to markets Fed Chairman Jerome Powell stayed on message overnight, acknowledging the improvements seen in the economy but highlighting that it was “uneven and far from complete.” Mr Powell saw no signs of “bad inflation”. He committed to keeping monetary policy ultra-easy, emphasising the need...

Powell Supported Risk Sentiment

Market movers today Today is a quiet day in terms of data releases. In Sweden, the Debt Office borrowing forecast is due out today. In the UK, we will listen closely to Bank of England policymakers with governor Bailey, Broadbent, Vlieghe, Haskel and Haldane all speaking. In the US;...

There’s No Such Thing As Inflation, It’s Just An Illusion, Or Is It?

The major US indices erased earlier losses and the long-maturity treasury yields reached a delightful moment of release after the Federal Reserve (Fed) Chair Jerome Powell told the US policymakers that the monetary policy will remain unchanged until substantial progress is made in the US jobs market, and more...

Fed Powell Cautioned about Uneven Recovery, Pledged to Maintain Stimulus

At the testimony before the Senate, Fed Chair Jerome Powell cautioned that the economic recovery is uneven. He pledged to maintain sufficient support to achieving the employment and inflation targets. Concerning economic developments, Powell refrained from sending a too optimistic message. He affirmed that the recovery highly depends on the...

CHF Selloff Intensifies, NZD Rises after RBNZ

New Zealand Dollar rises broadly today after RBNZ stood pat and didn't sound particularly concerned with the strong exchange rate. Though, Sterling remains the strongest one, continued to be supported by lockdown exit optimism. Other commodity currencies are also firm despite steady risk market sentiments. Yen and Swiss Franc...

Asian Open: Powell And Cryptocurrencies Create Turbulence For Indices

A broad sell-off in cryptocurrencies exacerbated pressure on indices, which were already buckling under the strain of higher yields. Until Powell came to the rescue. Asian futures: Australia's ASX 200 futures have fallen by -0.37% to 6,766 Japan's Nikkei 225 futures have fallen by -0.36% to 30,060 Hong Kong's Heng...

Oil Turns Negative, Gold Receives Little Support From Powell

Powell says Fed remains in dovish mode Fed Chair Powell testified before a House Committee and reiterated the Fed’s dovish commitment for the next couple of years. The overall takeaway from Powell is that over the next couple of months he will just keep singing the same dovish commitment song....

All Eyes on Powell

An uninspiring start to trading on Tuesday, with all eyes clearly on Jerome Powell's testimony in the Senate after the open. European stocks have pulled back as the morning has progressed and find themselves largely in negative territory and US futures suggest we're going to similar moves there, with tech...

Fed Powell: Developments point to an improved outlook for later this year

In the semiannual testimony, Fed Chair Jerome Powell acknowledged that "the number of new (coronavirus) cases and hospitalizations has been falling, and ongoing vaccinations offer hope for a return to more normal conditions later this year". The economy recovery "remains uneven and far from complete, and the path ahead is...