Tag Archives: U.K.

The chief development in the capital markets has been the sharp drop in equities after a significant rally since late last year and the rise in yields. The dollar had fallen alongside the exuberant appetite for risk assets. Anecdotal evidence supports the idea that the greenback was used as a funding currency to purchase those risk assets. The Dollar Index’s first weekly advance since the middle of last December amid...

It is not easy to recall another week in which there were so many potential changes to the broad investment climate. The relatively light economic calendar in the week ahead may allow investors to continue to ruminate about some of those developments. Here we provide thumbnail assessments of the main drivers. China The PBOC modified the way the reference rate is set.  Currencies are allowed to trade in a band around...

There are a number of events and economic reports in the week ahead that will help shape the investment climate in the weeks and months ahead. In recognition of the importance of initial conditions, let’s briefly summarize the performance of the dollar and main asset markets. After recovering from a five-month decline in September and October, the dollar has lost ground against all the major currencies here in November,...

Swiss Franc The Euro has risen by 0.17% to 1.1469 CHF. EUR/CHF and USD/CHF, August 07(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is narrowly mixed to start the new week. Two main developments stand out. First, the dollar-bloc currencies are trading heavily. The Australian dollar is pushing lower for the fifth consecutive session. The greenback is advancing...

Summary: FOMC is the highlight of the week. Early look at July inflation in Europe may see less pressure. Overall household consumption in Japan is rising, helped by robust labor market, but little new price pressures. The data this week is expected to confirm what many investors have come to assume. The US economy accelerated in Q2. The eurozone economy is enjoying steady growth, but the momentum appears to...

Swiss Franc EUR/CHF - Euro Swiss Franc, May 05(see more posts on EUR/CHF, ) - Click to enlarge  FX Rates The US dollar is narrowing mixed as the employment data, and Fed speeches are awaited. Six Fed officials speak today, including Yellen and Fischer. Regional Presidents Williams, Rosengren Evans and Bullard also speak. It will be the first flurry of speeches since the FOMC meeting. Lastly, we note some chunky...

The Bretton Woods system was intentionally set up to funnel monetary convertibility through official channels. The primary characteristic of any true gold standard is that any person who wishes can change paper claims into hard money. It was as much true in any one country as between those bound by the same legal framework (property). What might differ were the standards for satisfying those claims (“good delivery”...

Summary: Provided Le Pen and Macron or Fillion make to the second round, the market response to the French election results may be short lived. BOJ, Riksbank and ECB meetings. Spending authorization and some announcement from the White House on tax policy are in focus as Trump’s 100th day in office approaches. The results of the French presidential election will be known prior to the open of the Asian...

Summary: May calls snap election for June 8. Tories running 20 percent point lead over Labour. Next election would be in 2022, after the Brexit negotiations conclude. UK Prime Minister May surprised investors by calling for a snap election on June 8. The Tory Party is ahead of Labour by over 20 percentage points. It currently enjoys a 17-seat majority in the House of Commons. The early election would put the...

Summary: May calls snap election for June 8. Tories running 20 percent point lead over Labour. Next election would be in 2022, after the Brexit negotiations conclude. UK Prime Minister May surprised investors by calling for a snap election on June 8. The Tory Party is ahead of Labour by over 20 percentage points. It currently enjoys a 17-seat majority in the House of Commons. The early election would put the...