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June Monthly

May 31, 2021
The US dollar, which confounded most observers by appreciating in the first quarter, has fallen broadly in April and May.  The drivers, ironically, are the same:  US rates and relative economic strength.  Treasury yields rose sharply in Q1, and this helped the greenback recover from the accelerated slide in November and December 2020. However, the…
June Monthly June Monthly Reviewed by Marc Chandler on May 31, 2021 Rating: 5
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China Raises Reserve Requirement for FX, Stemming the Yuan's Rise

May 31, 2021
Overview: US and UK markets are closed for holidays today, contributing to the rather subdued price action today. The MSCI Asia Pacific Index rallied two percent last week, the most in three months, and most markets began off the week with modest gains.  Japan, Australia, and Singapore, for notable exceptions.  Europe's Dow Jones Stoxx 600 too…
China Raises Reserve Requirement for FX, Stemming the Yuan's Rise China Raises Reserve Requirement for FX, Stemming the Yuan's Rise Reviewed by Marc Chandler on May 31, 2021 Rating: 5
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Dollar Correction at Hand or Just End-of-Month Adjustment?

May 30, 2021
The key question facing the foreign exchange participants is whether the dollar's bounce into the end of May is the beginning of a more sustained correction after falling for two months or simply a pause in the selling pressure.  As we have noted before, short-term trend changes are common around the end of months and the US employment report,…
Dollar Correction at Hand or Just End-of-Month Adjustment? Dollar Correction at Hand or Just End-of-Month Adjustment? Reviewed by Marc Chandler on May 30, 2021 Rating: 5
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Four Drivers in the Week Ahead

May 29, 2021
After the US and UK holidays on Monday, there are four highlights in the week ahead. First, the Reserve Bank of Australia's meeting will receive more attention after the Reserve Bank of New Zealand signaled the likelihood of a rate hike in the second half of next year. Second, the G7 finance ministers may agree to endorse a proposal for a mini…
Four Drivers in the Week Ahead Four Drivers in the Week Ahead Reviewed by Marc Chandler on May 29, 2021 Rating: 5
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The Yuan Extends Gains, While Sterling's First Close above $1.42 in Three Years Goes for Nought The Yuan Extends Gains, While Sterling's First Close above $1.42 in Three Years Goes for Nought Reviewed by Marc Chandler on May 28, 2021 Rating: 5
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Narrow Ranges in FX Prevail Amid Month-End Considerations

May 27, 2021
Overview: Dollar demand linked to the month-end gave the greenback a bit of a reprieve, helped by firmer bond yields. Some momentum players may have been forced out of the euro and yen when the $1.22 and JPY109 levels yielded. However, follow-through dollar buying has been limited, and it has come back a little softer but broadly so.  The US 10-ye…
Narrow Ranges in FX Prevail Amid Month-End Considerations Narrow Ranges in FX Prevail Amid Month-End Considerations Reviewed by Marc Chandler on May 27, 2021 Rating: 5
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RBNZ Joins the Queue, while Yuan's Advance Continues

May 26, 2021
Overview:  The decline in US rates and the doves at the ECB pushing back against the need to reduce bond purchases next month have seen European bond yields unwind most of this month's gain.  The inability of US shares to hold on to early gains yesterday did not deter the Asia Pacific and European equities from trading higher.  Only Australian…
RBNZ Joins the Queue, while Yuan's Advance Continues RBNZ Joins the Queue, while Yuan's Advance Continues Reviewed by Marc Chandler on May 26, 2021 Rating: 5
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Softer Yields Weigh on the Greenback

May 25, 2021
Overview: The decline in US 10-year rates to two-week lows below 1.59% is helping rebuild bullish enthusiasm for stocks and weighing on the US dollar.  The NASDAQ reached two-week highs yesterday, and almost all the large markets in the Asia Pacific region rose, though India struggled.  Europe's Dow Jones Stoxx 600 is at a new record high, pac…
Softer Yields Weigh on the Greenback Softer Yields Weigh on the Greenback Reviewed by Marc Chandler on May 25, 2021 Rating: 5
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