I noted in my Macro Wrap this morning the unexpected reaction of the EUR/USD currency cross to the Yellen nomination news: The Euro has been a bastion of strength in an otherwise choppy market over …
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Asian Stocks Mostly Lower, Led by China – The Shanghai Composite closed down 2% after a steady drip lower from open to close. Chinese Foreign Direct Investment was only up 0.6% year over year (vs. …
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Larry Summers withdrew his name from the Federal Reserve Chairman pool on Sunday afternoon New York time. Classic risk-on price action has ensued in the overnight session. Larry Summers Won’t be Fed Chairman. After months …
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Chinese economic and market weakness has been one of the major macro themes of 2013. Whether it’s been Chinese equities (ex-Internet), companies highly exposed to Chinese industrial growth (like CAT or BHP), industrial commodities (iron …
Continue readingThe Aussie Dollar has acted more like an emerging market currency in the past 2 months. It declined greater than 10% against the USD from mid-April to early June. That’s an enormous move for any …
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Risk appetite this year has been driven by yen weakness. (For background on why, my post here.) Global equity markets started their tremendous rally when the USD/JPY rate broke out (stronger USD, weaker Yen) in …
Continue readingThe central bank of Australia, the RBA, cut rates last night by 0.25%, to 2.75% from 3%. Australia is slowly converging to the global interest rate of 0%. I became bearish on the Aussie Dollar …
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