Prices: A Week in a Day

Aug 25 11:08 2019 Print This Article

The pattern has been repeated.  The Federal Reserve, to which he appointed the Chair, and several Governors does not move as quickly as the President wants on monetary policy. He responds by escalating the trade tension, delivering the independent central bank a fait accompli.  Increasing the trade conflict succeeds where the unusual and repeated protestations of the dollar's strength fail, pushing the greenback lower in the foreign exchange market.  

Until the end of the last week, relatively narrow trading ranges characterized the major currencies.  The euro did make a marginal new low following another disappointing PMI, while the German manufacturing reading remaining below the 50 boom/bust level for the eighth consecutive month.  The deterioration of the US-China trade relations turned back what had looked like a pending run at the $1.10 area that held last month.  The dollar was confined to less than 65 pip range against the yen for the first four sessions last week before the range was nearly doubled ahead of the weekend. 

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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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