1994 This is the first time the FOMC has raised by .75% in one meeting since 1994. There are many similarities between then and now. In 1994 the Federal reserve also had a credibility problem, which was addressed in February […]
Market Diary – May 2022
We continue to see the hawkish Federal Reserve evolve before our eyes. Given their sharp stance, the ripple effects in all markets are dramatic. Unfortunately, if Jerome Powell wants to imitate Paul Volcker, he faces a long and difficult path. […]
Changing Tides
There was plenty of activity across every market today. We saw a massive sell off in the crypto world. We saw the USD rally on Fed minutes. And we saw another dip in equities. Any one of these alone would […]
US Dollar Continues Drifting Lower
The US Fed has again re-iterated its dovish policy stance. Powell left no room for doubt that they are “not even ready to talk about talking about” raising rates. This was completely expected and has weighed heavily on the US […]
Dollar Doldrums Continue
A slow grind down for the USD generally. The move seems to match a similar drift down in US 10 yr yield, but correlation is not necessarily causation.
Spring Break for the Dollar
When we last looked at the FX market, the dollar had been on an impressive run to its highs for the year. However, as vacation season began, the shine quickly faded for the US currency. US rates topped out above […]
US Dollar Continues to Rise
After a very choppy week, the US currency emerged as a refuge of strength across a wide range of currencies. The long end of the interest rates market settled down slightly and commodities fell from their recent highs. Volatility has […]
USD is King (but not in Canada)
US 10 year yield resumed its rampage higher this week. The USD was generally stronger as well, but the Canadian dollar bucked that trend. The result was a mixed bag for the US Dollar Index. There are plenty of releases […]
FX Market Commentary
Non-farm payrolls delivered some fireworks on Friday. Coming in at a whopping 379k vs expectations of 180k. Perhaps more interesting, private payrolls performed even better which clearly points to the recovery in the private sector getting back on track. The […]
FX Market Update
The week behind We saw a lot of activity across all markets last week. US Yields shot higher, leading others to follow suit. Ultimately, the US Dollar was the main beneficiary across the board. The Fed remained quiet on the […]