HELLOOOO Vol! +1,200 Dow Turnaround
We have not seen this type of volatility in the financial markets since the beginning of the pandemic.
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We have not seen this type of volatility in the financial markets since the beginning of the pandemic.
Between hawkish FOMC minutes, a strong ADP report and surge in Treasury yields the U.S. dollar should be stronger. However in the last 48 hours, the greenback pulled back against the Japanese Yen, saw modest gains versus commodity currencies and consolidated against euro and sterling.
Today’s U.S. economic reports reminded investors of the dollar’s appeal. The labor market is strong and the Federal Reserve will be actively reducing stimulus this year driving rates higher.
The greenback moved sharply higher against all of the major currencies with USDJPY closing in on a 4 year high.
The rally in currencies and equities continued on Thursday with the U.S. dollar extending lower.
The Federal Reserve took a big step in their battle with inflation today when they announced plans to taper asset purchases by $60 billion a month.
Currencies and equities have been consolidating ahead of Wednesday’s Federal Reserve monetary policy announcement.
Everything from equities, currencies to Treasuries and crypto have been itching for breakouts. With five major central bank rate decisions…
U.S. inflation numbers will be released tomorrow and economists are looking for the monthly CPI growth rate to slow and the annualized rate to accelerate.
At this pace, the Bank of Canada can no longer justify the current level of policy accommodation. The market is pricing in anywhere between 4 to 5 rate hikes by the BoC next year.
The U.S. dollar rallied on Monday against some but not all of the major currencies. Our readers should not find the rally in USD/JPY or decline in EUR/USD surprising because we talked about how a soft jobs report changes nothing for U.S. policymakers on Friday who are laser focused on inflation.
Job growth in the U.S. slowed significantly last month. The U.S. dollar sold off when the numbers came out but recovered quickly for 3 reasons.