Daily Market Commentary

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Wednesday August 26th, 2020

Markets consolidate ahead of the widely anticipated Federal Reserve Chair Jerome Powell’s speech tomorrow. The Fed Chair is anticipated to have a dovish tone tomorrow, and is expected to layout a critical shift in policy to Average Inflation Targeting (AIT) which allows inflation to surpass 2% and...
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Tuesday August 25th, 2020

Currencies strengthen after the Sino/US trade phone call and vaccine optimism helps improved the “risk-on” mood. The US Trade Representative and Treasury Secretary held a phone call with the Chinese Vice Premier in which they reaffirmed their commitment to the phase one trade deal. The UK Financ...
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Monday August 24th, 2020

The US$ weakens, equity & oil markets strengthen on the FDA’s authorization of a plasma treatment for coronavirus. The FDA announced its “emergency use authorization” of the treatment on Sunday as US virus cases approach 6mio and a death toll at +180k. Investors remain cautious that this c...
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Friday August 21st, 2020

Weak EU PMI data, Sino/US confusion on trade, oil prices slip and US$ Index rallies as the “risk-on” mood stalls. The US$ index rebounded strongly after testing multi-year lows earlier in the week as investors consolidate short positions. Concerns rise over the direction of Sino/US bilateral pha...
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Thursday August 20th, 2020

The US$ index rallies 1%, equity and oil markets weaken after dovish FOMC minutes. The FOMC minutes reiterated its message for an expected tough and prolonged economic recovery, but the minutes were less dovish than some had expected. The US, Chinese, Philippines, Sri Lankan, Turkish and Norwegian c...
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Wednesday August 19th, 2020

The US$ Index is holding steady as markets await the release of the FOMC minutes today. The US$ sitting at +2-year lows as the ongoing effects of the Fed’s stimulus programs continues to add pressure to the US$. Falling treasury yields remain a primary driver for the weakening US$, investors will ...
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Tuesday August 18th, 2020

The US$ index extends its sell off testing near 2-year lows vs a basket of major currencies. US$ is facing pressure from escalating Sino/US tensions, the Nov US elections, falling US yields, stalled US relief stimulus talks and a sluggish US economy. Other currencies are capitalizing on the weak US$...
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Monday August 17th, 2020

The US$ continues to edge weaker, oil prices remain steady, while Sino/US trade talks are delayed, and Japanese GDP falls worst on record. Japan, the worlds 3rd largest economy saw Q2 GDP annualized fall -27.8% its worst decline since on records began. In the US, Democrats prepare to officially nom...
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Friday August 14th, 2020

The US Senate breaks without a relief deal, the US$ index extends its losing streak, US vaccine hopes, and Chinese data falls short of expectations. The US Senate went into recess until September 14th, meaning a relief stimulus deal is likely weeks away at best. The US$ index remains under pressure,...
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Thursday August 13th, 2020

The US$ remains under pressure as the US stimulus impasse continues. Congressional Dems are being accused of not willing to negotiate and are being blamed for the 5-day stall in talks over relief legislation. Sino/US tensions continue to remain an ongoing concern ahead of the Aug15th review of the P...
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