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Macro and Prices

April 30, 2022
We offer our weekly macro and technical commentary below ahead of tomorrow's publication of Bannockburn's May monthly outlook.   The week ahead is packed with several central bank meetings and important high-frequency economic data.  The week begins off with China's April PMI over the weekend.  The world's second-largest economy is…
Macro and Prices Macro and Prices Reviewed by Marc Chandler on April 30, 2022 Rating: 5
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Did China's Politburo Throw Markets a Lifeline?

April 29, 2022
Overview: Speculation that a midday statement by China's Politburo signals new efforts to support the economy ahead of  next week's holiday appears to have stirred the animal spirits.  The unusual timing of the statement helped spark a rally in Asia-Pacific that lifted most of the large market by more than 1%.  Europe's Stoxx 600 has n…
Did China's Politburo Throw Markets a Lifeline? Did China's Politburo Throw Markets a Lifeline? Reviewed by Marc Chandler on April 29, 2022 Rating: 5
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BOJ Demonstrates Resolve and Riksbank Surprises

April 28, 2022
Overview: The BOJ underscored its commitment to capping the 10-year yield at 0.25% and sent the yen reeling.  The dollar rose to JPY131, a new 20-year high.  Sweden's Riksbank caught many wrongfooted with a 25 bp hike to initiate the tightening cycle.   The krona shot up and is the strongest of the major currencies, rising about 0.65% against …
BOJ Demonstrates Resolve and Riksbank Surprises BOJ Demonstrates Resolve and Riksbank Surprises Reviewed by Marc Chandler on April 28, 2022 Rating: 5
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Euro and Sterling Slumps Extended

April 27, 2022
Overview: Russia's decision to cut gas supplies to Poland and Bulgaria and the sharp sell-off in US equities yesterday casts a pall over the markets today.  But not the dollar. The euro punched through $1.06 for the first time in five years and the greenback turned higher against the yen after falling to a seven-day low.  The major bourses in …
Euro and Sterling Slumps Extended Euro and Sterling Slumps Extended Reviewed by Marc Chandler on April 27, 2022 Rating: 5
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Risk Appetites Challenged by Lavrov's Warning about Nuclear Conflict

April 26, 2022
Overview: The recovery attempt of risk appetites, reflected in the recovery and strong close in US stocks yesterday was dealt a blow by Russia's Foreign Minister's warning of a "serious" danger of nuclear conflict.  In Asia-Pacific, most of the large equity markets advanced.  China was an exception even though the currency snappe…
Risk Appetites Challenged by Lavrov's Warning about Nuclear Conflict Risk Appetites Challenged by Lavrov's Warning about Nuclear Conflict Reviewed by Marc Chandler on April 26, 2022 Rating: 5
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China's Covid Sends Commodities Lower and helps the Dollar Extend Gains

April 25, 2022
Overview:  Fears that the Chinese lockdowns to fight Covid, which have extended for four weeks in Shanghai, are not working, and may be extended to Beijing has whacked equity markets, arrested the increase in bond yields, and lifted the dollar.  Commodity prices are broadly lower amid concerns over demand.  China's CSI 300 fell 5% today and Ho…
China's Covid Sends Commodities Lower and helps the Dollar Extend Gains China's Covid Sends Commodities Lower and helps the Dollar Extend Gains Reviewed by Marc Chandler on April 25, 2022 Rating: 5
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Dollar Bulls Take no Prisoners, but have the Bears Capitulated?

April 24, 2022
The market has moved to discount the likelihood that the next four rate hikes by the Federal Reserve will be in 50 bp increments. As a result, the implied yield of the December 2022 Fed funds futures contract has risen for six consecutive sessions, finishing last week near 2.70%, a roughly 35 bp increase.   Now, the swaps market sees a terminal Fe…
Dollar Bulls Take no Prisoners, but have the Bears Capitulated? Dollar Bulls Take no Prisoners, but have the Bears Capitulated? Reviewed by Marc Chandler on April 24, 2022 Rating: 5
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Week Ahead: EMU CPI and GDP, US GDP, and BOJ Meeting Highlights

April 23, 2022
The US dollar is having a good month. Against the euro and yen, it is appreciating for the fourth consecutive month. Rising rates continue to appear to be the main driver.  The divergence of monetary policy is palpable.  At the same time, it is not simply a positive news story in the US but also less constructive developments in Japan and the euro…
Week Ahead: EMU CPI and GDP, US GDP, and BOJ Meeting Highlights Week Ahead: EMU CPI and GDP, US GDP, and BOJ Meeting Highlights Reviewed by Marc Chandler on April 23, 2022 Rating: 5
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