Daily Market Commentary

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Thursday September 10th, 2020

The US$ weakens ahead of the ECB rate decision, on US election rhetoric and ahead of US data out this morning. A primary focus of the markets will be the ECB rate decision out at 7.45 EST, as well as possible comments from the ECB president on concerns over a strengthen Euro. The US president [&hell...
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Wednesday September 9th, 2020

The global “risk-off” mood continues with stalled US fiscal stimulus, paused vaccine trials and the rising Sino/US tensions. US fiscal stimulus appears to have taken a step backwards as Reps lowered the amount of proposed stimulus to US$500-700 bln with Dems responding its “an insult to Americ...
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Tuesday September 8th, 2020

US$ stronger, commodity and equity markets weaker as risk-off mood returns to the markets. The US President’s comments on Monday which raised the idea of decoupling the US & Chinese economies. The NY Times also reported that the US is also considering banning some or all products made with cot...
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Friday September 4th, 2020

A volatile Thursday which saw a bout of risk aversion helping to rallying the US$, but crushing US tech-stock. The US$ is set for its biggest weekly gain since June, up 0.7% vs a basket of major currencies in September. Global currency markets for the most part consolidated off yesterday’s lows as...
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Thursday September 3rd, 2020

Worried central bankers, vaccine hopes, falling oil prices and a firmer US$. The sharp fall in the US$ value in August raised concerns from some central banks, including the ECB and China’s PBOC watching a weakening US$ which could impact their exports, lower prices and possibly increase the need ...
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Wednesday, September 2nd, 2020

Equity and Commodity markets remain positive, US$ rebounds, while Australian and EU economic data disappoints. US$ Index rebounds 0.5% mtd after Tuesday’s positive manufacturing data and a growing anticipation that the US Senate may resume stimulus talks. AUD weakened (-0.5% mtd) after its GDP dat...
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Tuesday September 1st, 2020

The US$ remains under selling pressure with the US$ index hitting 2-year lows, while equity and commodity markets strengthen. In China the Caixin manufacturing PMI beat expectations for August and showed continued positive signs of a Chinese recovery from the covid lockdowns. The Chinese CNY rallied...
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Monday August 31st, 2020

The « risk-on » mood prevails with the US$ index testing multi-month lows, Oil & Equity markets rallying, with the Chinese service sector data surging. Chinese data out this morning boosted markets with the service sector expanding greater-than-expected, while manufacturing PMI grew at a slo...
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Friday August 28th, 2020

US$ comes under selling pressure after the Fed Chair’s speech yesterday, Japanese PM resigns and “risk-on” sentiment returns to the markets. As expected, the Fed Chair introduced the Average Inflation Target (AIT), with the anticipated US$ sell off has been controlled and momentum is expected ...
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Thursday August 27th, 2020

Global markets consolidate ahead of the Fed Chairs speech today, with the US$ holding steady near its one-week lows. Expectations are that the Fed Chair will introduce a new monetary policy framework which will include Average Inflation Targeting (AIT). The impact of the policy would mean that inter...
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