Daily Market Commentary

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Monday December 14th, 2020

The US$ drops as risk-on mood returns on US vaccine rollouts and US stimulus optimism. The US launches its first shipments of vaccines for distribution this week, as US virus cases surpass 16.25mio and NY announces new virus restrictions. US stimulus hopes continue as lawmakers are expected to unvei...
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Friday December 11th, 2020

Safe haven US$ buying returns as US stimulus talks stall. US stimulus talks remains at an impasse as the Senate Majority Leader remains reluctant to agree to the bipartisan stimulus plan. A failure to secure a US stimulus agreement by next week would likely mean US stimulus relief wouldn’t happen ...
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Thursday December 10th, 2020

Equity & oil markets stronger, currency markets stable as markets await the ECB Presidents comments and US Jobless claims. Markets hold for the ECB leaves rates unchanged and adds EU 500b to the pandemic program and extends it by 9 months. the US jobless claims. In the US the US pandemic stimulu...
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Wednesday December 9th, 2020

Upbeat Chinese data, US Stimulus optimism and vaccine approval hopes helps the currency markets to snap a 3-day losing streak. Democrats dismiss McConnell’s stimulus relief plan, prompting Mnuchin to offer a 916bln stimulus plan in an effort to break the months-long standoff. Markets remain positi...
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Tuesday December 8th, 2020

Equity, currency & oil markets edge lower, while the US$ holds steady as safe haven buying returns. The clock is ticking for the proposed US$908bln bipartisan pandemic stimulus bill, negotiations continues and a signed bill could be 7-10 days away.  Globally the sharp rise in coronavirus cases ...
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Monday December 7th, 2020

The US$ holds above 2018 lows, Sino/US tensions increase, Brexit looks 50/50 and a US pandemic stimulus is likely. Chinese exports hit record highs, but CNY pulls back from its 2 ½-year highs on rising Sino/US tensions. The US is preparing to in pose fresh sanctions on a number of Chinese officials...
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Friday December 4th, 2020

The US$ index remains under pressure, down 1.4% in December and down 7% YoY, with analysis predicting further US$ weakness into 2021. Risk on sentiment remains as US stimulus optimism grows as GOP support builds for the proposed US$ 908bln in relief. Ahead of a vaccine approval in the US the Califor...
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Thursday December 3rd, 2020

Safe haven US$ continues under pressure amid US fiscal stimulus hopes and vaccine approval optimism. The US$ drops to multi-year lows as risk on sentiment continues to surge as investors expect the US to approve a vaccine for rollout in 2020. Adding to the risk on sentiment positive progress is bein...
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Wednesday December 2nd, 2020

The US$ selloff stalls amid vaccine rollouts, US stimulus talks and Sino/US trade stability. The US$ bounces slightly off its 2 ½ year lows as markets steady and trade related currencies lose steam. The US Treasury Secretary & House Speaker Pelosi held stimulus talks for time since Nov 3rd, wit...
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Tuesday December 1st, 2020

Vaccine optimism, strong Chinese PMI data and US stimulus hopes see the US$ index drop to its lowest level since April 2018. Vaccine optimism continues as Pfizer joins Moderna in seeking EU emergency approval for its COVID-19 vaccine, with hopes of a targeted rollout in December. Expectation is also...
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