Greenback Marks Time Ahead of FOMC

Nov 08 11:11 2018 Print This Article

Overview: The S&P 500's largest advance in three weeks helped extend the recovery in Asia and European equities.  All the equity markets in Asia rallied, led by the Nikkei's 1.8% gain, except for China, were modest losses were recorded.  The MSCI Asia Pacific Index has gained in six of the past seven sessions.  In Europe, the Dow Jones Stoxx 600 is reaching its best level in nearly a month with a 0.6% gain in late morning turnover.  It is the seventh gain in the past nine sessions.  Benchmark 10-year bond yields are mostly one or two basis points higher, though Italian bonds are underperforming.  The dollar itself is narrowly mixed against the major currencies ahead of the results of the FOMC meeting.  The Swedish krona is the strongest of the majors (~0.4%), boosted by comments from the central bank governor indicating that a rate hike could be delivered as early as next month, though many see February as a more likely time frame. Among emerging markets, the volatile Turkish lira and South African rand are nursing 0.6%-0.8% declines, while the most active EM currencies, the Chinese yuan and Mexican peso are fractionally lower (-0.15%).  

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About Article Author

Marc to Market

Marc Chandler has been covering the global capital markets in one fashion or another for more than 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate work, where he majored in political science and the humanities. He holds master's degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairs, where he is an associate professor. A prolific writer and speaker he appears regularly in the press and has spoken for, and is an honorary fellow of, the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009, Chandler was named a Business Visionary by Forbes. In 2009, his book, Making Sense of the Dollar, was published by Bloomberg Press and received a Bronze Award from Independent Publishers.

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