Thursday , March 4 2021
Home / Tag Archives: Federal Reserve

Tag Archives: Federal Reserve

How High is Too High for Rising Government Bond Yields?

The two day rise in the gold price of more than US$50 fizzled out on Tuesday. The gold price is down about 7% (in US dollar terms) since its year-to-date high set on January 6. It is also down 13% from its all-time high set in August 2020. The silver price, boosted by social media attention, did not set its year-to-date high until February 1. Since then the silver price has slid about 5% from that high. Chairman Powell testified to Congress on Tuesday stating that...

Read More »

FX Daily, February 24: Equities Try to Stabilize and Low Short-Term Rates Help Keep the Dollar on the Defensive

Swiss Franc The Euro has risen by 0.21% to 1.1018 EUR/CHF and USD/CHF, February 24(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The sharp recovery in US shares yesterday that saw the S&P 500 snap a five-day slide failed to carry into Asia Pacific trading earlier today. All the markets fell save India and Singapore. Losses were led by a 3% drop in Hong Kong as the first increase in the stamp duty...

Read More »

FX Daily, February 17: Follow-Through Dollar Buying after Yesterday’s Reversal Tests the Bears

Swiss Franc The Euro has risen by 0.03% to 1.0802 EUR/CHF and USD/CHF, February 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview:  After reversing higher yesterday, the US dollar sees follow-through gains today, leaving the euro around a cent lower from yesterday’s highs. Sterling’s surge is also being tempered. Most emerging market currencies are lower as well. The jump in bond yields has stalled, but only...

Read More »

FX Daily, January 12: Markets Catch Collective Breath

Swiss Franc The Euro has fallen by 0.04% to 1.081 EUR/CHF and USD/CHF, January 12(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The capital markets were stabilizing today after dramatic moves yesterday. Equity markets are recovering, and the dollar is paring yesterday’s gains. Most equity markets in the Asia Pacific region rose, though Taiwan, South Korea, and Australia were notable exceptions. Europe’s Dow...

Read More »

Consumers, Too; (Un)Confident To Re-engage

There is a lot of evidence which shows some basis for expectations-based monetary policy. Much of what becomes a recession or worse is due to the psychological impacts upon businesses (who invest and hire) as well as workers being consumers (who earn and then spend). Once the snowball of macro contraction begins rolling downhill, rational prudence dictates some degree of caution on all parts (pro-cyclicality). Bathed in the unearned glow of the Great “Moderation”,...

Read More »

FX Daily, December 16: Greenback Slides Ahead of FOMC as Optimism Underpins Risk Appetites

Swiss Franc The Euro has risen by 0.26% to 1.0789 EUR/CHF and USD/CHF, December 16(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The S&P 500 snapped a four-day downdraft helped by optimism over the progress toward fiscal stimulus and some hope that a new trade deal can still be negotiated between the UK and EU. Europe reported better than expected PMIs. Equities are broadly higher, as are interest rates,...

Read More »

Polar Opposite Sides of Consumer Credit End Up in the Same Place: Jobs

If anything is going to be charged off, it might be student loans. All the rage nowadays, the government, approximately half of it, is busily working out how it “should” be done and by just how much. A matter of economic stimulus, loan cancellation proponents are correct that students have burdened themselves with unprofitable college “education” investments. Without any jobs, let alone enough good jobs, an entire generation of Americans has been hamstrung,...

Read More »

FX Daily, November 20: US Treasury-Fed Dispute Spurs Handwringing but Immediate Market Impact was Exaggerated

Swiss Franc The Euro has fallen by 0.14% to 1.080 EUR/CHF and USD/CHF, November 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: News that the stimulus talks between the House Democrats and Senate Republicans was the excuse traders were looking for to extend the US equity gains yesterday, but shortly after the close, confirmation that Treasury was not going to agree to extend several Fed facilities sent stocks...

Read More »

FX Daily, November 17: Greenback Remains Under Pressure

Swiss Franc The Euro has fallen by 0.15% to 1.0802 EUR/CHF and USD/CHF, November 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Moderna’s announcement did not spur nearly the magnitude of the disruption caused by Pfizer’s similar announcement a week ago. Still, in the US, the NASDAQ underperformed the other indices, and the US Dow Industrials saw record highs. US yields were firm, and the 10-yield rose...

Read More »

FX Daily, October 08: Markets Catch Collective Breath

Swiss Franc The Euro has fallen by 0.05% to 1.0781 EUR/CHF and USD/CHF, October 08(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The S&P 500 and NASDAQ closed at their highest levels in around a month yesterday, recouping Tuesday’s presidential tweet-driven drop. We thought the market overreacted to the end of the fiscal talks as many had already recognized that a stimulus agreement was unlikely before...

Read More »