Forex and the Economy

Dollar Recovers Fed Driven Losses on Safe-haven Flows

The US dollar had a wild week, finishing the week mixed against its major trading partners, as market participants reassess the effects of the Fed’s dovish commitment and how much weaker the German economy will become.  Risk-aversion remains the key theme for financial markets after the three-mo ...

Dow slides more than 250 points as fears of global slowdown persist, Nike falls

Stocks dropped on Friday as jitters over the global economy were sparked by dreadful manufacturing data out of Europe and the Federal Reserve’s cautious outlook on the U.S. economy. The Dow Jones Industrial Average traded 274 points as Nike shares underperformed. The S&P 500 fell 0.9 percent, led ...

Terrible German PMI data sinks global stocks and euro

Stocks & USD – Terrible European data kills risk appetite EUR – Euro falls as German bunds go negative Brexit – EU throws UK a delay bone  Oil – Stockpiles fell 9.6M even as imports rose 186K Gold – Stronger on dovish Fed Stocks & Dollar US equities are off to a poor start on the final d ...

Canada inflation climbs, while retail sales decline

Canadian inflation climbs Canadian inflation rose last month at a slightly faster-than-expected pace, pushed higher by increased costs associated with mortgage payments and fresh vegetables. According to Stats Canada, Canada’s CPI climbed +1.5% y/y in February, up from a +1.4% rise in January. M ...

Weekly links March 22: improving girl’s education, should project management training be done more, a better binscatter, and more...

Dave starts his blogging in his new home: Over at the CGD blog, Dave Evans and Fei Yuan discuss their new work reviewing 250+ interventions to try and figure out how best to help girls succeed in school. The key finding is that to improve learning for girls, general interventions that improve ped ...

Dollar supported by risk aversion trading

Friday March 22: Five things the markets are talking about Global equities are trading mixed after the European Union agreed Thursday to a short Brexit delay. Investors are also weighing up further signs of a sluggish global economy as a plethora of G7 central banks reassess normalizing their monet ...

Euro plunges on German manufacturing woes

Brexit extension means more sterling volatility for longer Sterling is as volatile as you would expect one week from the initially scheduled Brexit day as traders continue to weigh up the risks of no-deal Brexit against what an extension does for May’s deal, or the prospect of other options still ...

EU grants UK stay of execution

EU grants UK stay of execution The US yield curve continued to flatten again overnight following an uber-dovish Federal Reserve. On a slow news day in North America, this flowed through to stocks with the tech sector leading the way with Apple and semiconductor shares surging higher. Levi Strauss ...

Gold – March or October 2008? - David Brady (21/03/2019)

March 21, 2019 Last week, I said: “The big picture remains the same: When the Fed reverts to QE and the dollar tanks, Gold and everything else will soar. I believe a return to QE is inevitable at this point.” Any reversals in Gold present the final opportunity to “BTFD”. Well, the Fed too ...

Dollar shrugs off Fed’s dovishness

The US dollar came roaring back today, erasing all the losses it had from the very dovish Fed policy meeting.  The downgrade of interest rate increase expectations from two to none, combined with a softer economic outlook remains the main catalyst for falling yields on the Treasury curve and highe ...