Tag Archives: AUD

Global capital markets staged an impressive recovery after the initial reaction to the failure to freeze oil output sent reverberations through the oil markets, commodities, and Asian equities. The sharp reversal begun in Europe and extended in North America has been sustained. Oil prices remain firm. Perhaps the realization that the labor dispute in Kuwait has reduced output by as much as 60% (to 1.1mln barrels a day) helped underpin prices. The fall in output may be of greater immediate...

After initially extending its recent recovery gains against the major currencies, the US dollar began consolidating in the European morning.  An unexpected shift by the Monetary Authority of Singapore, replacing a modest and gradual currency appreciation with a more neutral stance, coupled with softer oil prices and weaker European equities, appears to have weighed on emerging market currencies. Asian equities extended their rally, with the Nikkei gaining 3.25% and the Shanghai Composite...

The yen's surge in recent days has captured the attention of investors and policymakers alike.    It is indeed unsettling and seems to run counter to the economic logic negative interest rates, which the BOJ surprised the market with at the end of January. Yet, if one thinks the market has gotten ahead of itself, perhaps picking  a top in the yen may not be prudent.  Entry levels are important but so is the stop.  It is not clear where one should put a stop if trying to pick a bottom to...