Soft CPI Pressure Swiss Franc
The CHF is amongst one of the worst performers on the day versus the dollar, plunging nearly 0.8% after reporting softer-than-expected CPI data. April prices came in at 0.3% y/y and only increased 0.1% m/m. With the SNB thought to be moving towards policy tightening, the sharp deceleration in prices may reintroduce the threat of [...]
Silver Takes the Spotlight in Volatile Week
The de-leveraging of the commodity market, spilled over into other riskier assets generated a round of liquidation of the markets. Silver was in the spotlight for most of the week sliding close to 17 dollars per ounce, as high frequency investors quickly exited positions. During the week, oil prices were also hammered sliding close to [...]
Dollar Crumbles During a Volatile Week
The week began with a market swoon after S&P announced that it was placing the US on negative watch. Standard & Poor’s Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt [...]
The Periphery Remains in the Headlines
The euro zone periphery remains in the news with Moody’s cutting Ireland 2 notches to the lowest investment grade rating, and maintaining a negative outlook. This followed Fitch’s removal of Ireland from credit watch yesterday. Irish sovereign yields had generally been falling since the bank stress tests were announced at the end of March, but [...]
“Risk On” Gains Steam Throughout the Week
The currency markets experienced a movement away from safe haven currencies during the weak as the Yen declined hitting its lowest level in the past 6 months against the dollar. The Euro remained range bound between 1.4250 and 1.4000 as issues related to Ireland and Portugal continue to put pressure on European peripheral yields. During [...]
Portugal Downgrade Shows S&P Behind the Curve
S&P cut Portugal one notch from BBB to BBB-, and comes just five days after it cut the rating from A- to BBB. Things have not changed that much in the last five days, which just proves the point that S&P is possibly behind the curve. The euro has remained firm, despite continued issues related [...]
Risk Returns to the Capital Markets
Riskier assets gained traction and were able to perform well during the majority of the past week. Equity markets, along with commodities lead the charge higher and pushed commodity oriented currencies higher as well. Commodity prices on precious metals also made new all time highs, specifically in Gold and Silver. The Euro and the Australian [...]
The Euro Breaks to the Upside
The main event in the currency markets this week was the statement issued by the ECB, alerting markets participants that inflation was moving up at an unacceptable rate, and the ECB was not going to sit on the sidelines waiting for growth to gain traction before it began to fight inflation. European Central Bank President [...]
Interest Rates Continue to Drive Currency Movements
Equity markets continued to consolidate during the week, as Asian and Europe felt the pressure from higher interest rates, and US markets took a breather from the torrid upside pace. Commodities came under some pressure after the PBOC tightened interest rates for the second time in the past 2 months. The currency markets continued to [...]
Euro Break Out!
Europe is Moving in Different Directions The euro made new high this week, the highest since late November. Ten year yields have fallen 10-25 basis points in Greece, Portugal and Spain. The rally in the periphery is generating some positive momentum for the Euro. It seems that Germany is balking at boosting the size of [...]
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