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Was Last Week an Inflection Point for the Dollar?

February 28, 2021
For several years now, many have asked themselves where the bond vigilantes, those bond bears that push back against "QE forever" and never-ending government deficits. They appeared with a vengeance last week.  Many investors took comments from Federal Reserve officials, especially the leadership, as evidence of complacency over inflatio…
Was Last Week an Inflection Point for the Dollar? Was Last Week an Inflection Point for the Dollar? Reviewed by Marc Chandler on February 28, 2021 Rating: 5
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Week Ahead Highlights and the Dollar

February 27, 2021
The global capital markets are adjusting to higher interest rates, and the reflation trade appears to have reached an inflection point.  Commodity prices continue to rally, partly on supply issues, including low inventories, and partly in anticipation of more robust demand.  The CRB's 1.75% decline before the weekend was the largest since the …
Week Ahead Highlights and the Dollar Week Ahead Highlights and the Dollar Reviewed by Marc Chandler on February 27, 2021 Rating: 5
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Fed Hike Ideas Give the Beleaguered Greenback Support

February 26, 2021
Overview:  A poor seven-year note auction and ideas that the first Fed hike can come as early as the end of next year spurred a steep sell-off in bonds and equities.Technical factors like the triggering of stops losses, large selling in the futures market, which some also link to hedging of mortgage exposure (convexity hedging), also play a role. …
Fed Hike Ideas Give the Beleaguered Greenback Support Fed Hike Ideas Give the Beleaguered Greenback Support Reviewed by Marc Chandler on February 26, 2021 Rating: 5
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The Dollar Remains Under Pressure even as Bond Yields Rise

February 25, 2021
Overview:  After several attempts, the euro has pushed above $1.22, and the Australian dollar has surpassed $0.8000 as the greenback remains under broad pressure against the major currencies.  Only the yen is having difficulty gaining on the beleaguered US dollar.  Rising yields in the US and Europe have sapped many of the emerging market currenci…
The Dollar Remains Under Pressure even as Bond Yields Rise The Dollar Remains Under Pressure even as Bond Yields Rise Reviewed by Marc Chandler on February 25, 2021 Rating: 5
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Equities Try to Stabilize and Low Short-Term Rates Help Keep the Dollar on the Defensive Equities Try to Stabilize and Low Short-Term Rates Help Keep the Dollar on the Defensive Reviewed by Marc Chandler on February 24, 2021 Rating: 5
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Dramatic Market Adjustment Continues

February 23, 2021
Overview:  Rising rates continue to spur a rotation and retreat in stocks.  Yesterday the NASDAQ sold-off by nearly 2.5% while the Dow Industrials eked out a minor gain.  Equities are mostly higher in the Asia Pacific region while Japanese markets were on holiday.  Hong Kong led the advancers, but China and South Korea extended losses.  The early …
Dramatic Market Adjustment Continues Dramatic Market Adjustment Continues Reviewed by Marc Chandler on February 23, 2021 Rating: 5
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Stocks Wilt under Pressure from Rising Yields

February 22, 2021
Overview:  Higher interest rates, driven by inflation expectations, is forcing an adjustment to equity markets.  The S&P 500 is poised to gap lower today following slides in the Asia Pacific region and Europe. Japanese and Taiwanese indices advanced by steep losses were seen in China, Hong Kong, and India.  Europe's Dow Jones Stoxx 600 is …
Stocks Wilt under Pressure from Rising Yields Stocks Wilt under Pressure from Rising Yields Reviewed by Marc Chandler on February 22, 2021 Rating: 5
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The Dollar at the Fulcrum

February 21, 2021
The US dollar had a tough week.  It fell against all the majors but the Swiss franc and Japanese yen.  Like the dollar, they are often used to fund the purchases of higher-yielding or more volatile assets, giving a greater appearance of safe-haven when those other assets go south, which invariably they do.  Sterling and the Australian dollar recor…
The Dollar at the Fulcrum The Dollar at the Fulcrum Reviewed by Marc Chandler on February 21, 2021 Rating: 5
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