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The Dollar Comes Back Bid

February 06, 2025
Overview:  After the tariff scare on Monday, which saw the US dollar surge, it has pulled back in the last couple of day. But it has returned bid today in what looks like position-squaring ahead of tomorrow US employment report. Despite some Fed officials recognizing that the tariffs may pose a supply shock that has to be taken into account, the o…
The Dollar Comes Back Bid The Dollar Comes Back Bid Reviewed by Marc Chandler on February 06, 2025 Rating: 5
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Yen Leads Further Unwinding of the Dollar's Tariff-Threat Inspired Gains

February 05, 2025
Overview: The US dollar is trading heavily as the pullback from tariff-threat extreme continues. It is weakest against all the G10 currencies and most emerging market currencies. Stronger than expected wage growth and softer US 10-year yields has driven the yen to new highs for the year, to lead the major currencies with more than a 1% gain. The w…
Yen Leads Further Unwinding of the Dollar's Tariff-Threat Inspired Gains Yen Leads Further Unwinding of the Dollar's Tariff-Threat Inspired Gains Reviewed by Marc Chandler on February 05, 2025 Rating: 5
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Brinkmanship and Theater

February 04, 2025
Overview: After yesterday's wild gyrations, the foreign exchange market is calm. US dollar losses seen as the tariffs on Mexico and Canada were postponed with what many observers see as minor concessions, though Canada is going to have a fentanyl czar have not been extended, and a consolidative tone has emerged. The 10% tariffs om China were i…
Brinkmanship and Theater Brinkmanship and Theater Reviewed by Marc Chandler on February 04, 2025 Rating: 5
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Tariffs Roil Markets

February 03, 2025
Overview: The US made good on its threats to levy 25% tariffs on Canada and Mexico, and 10% tariffs on China. There still seems to be skepticism in the market, with many thinking the tariffs on Canada and Mexico may not last the week. Trump will reportedly talk with Trudeau and Sheinbaum today. The dollar did not trade high so much it was marked s…
Tariffs Roil Markets Tariffs Roil Markets Reviewed by Marc Chandler on February 03, 2025 Rating: 5
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February 2025 Monthly

February 01, 2025
There is great uncertainty for investors and policymakers. The magnitude and timing of U.S. tariffs are not clear. China unveiled DeepSeek, which appears to give other advanced language model AIs a run for their money and calls into question the effectiveness of technology curbs. While Russia's invasion of Ukraine, the war in the Middle East, …
February 2025 Monthly February 2025 Monthly Reviewed by Marc Chandler on February 01, 2025 Rating: 5
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Renewed US Tariff Threat Doesn't Stop Equities from Marching Higher

January 31, 2025
Overview: The renewed threat of a 25% tariff on Canada and Mexico as soon as tomorrow has lifted the US dollar broadly and has not derailed the firmer tone in global equities. There are still many unknowns and questions, and this will keep investors and businesses on tenterhooks. The greenback is mixed against the G10 currencies in Europe and is m…
Renewed US Tariff Threat Doesn't Stop Equities from Marching Higher Renewed US Tariff Threat Doesn't Stop Equities from Marching Higher Reviewed by Marc Chandler on January 31, 2025 Rating: 5
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Nervous Calm Shrouds FX, while February 1 US Tariffs Look Less Likely

January 30, 2025
Overview:  There is a nervous calm in the foreign exchange market. The Federal Reserve indicated that the relatively good economic performance allow is to bide its time for the economic and policy picture to clarify and policy remained "meaningfully" restrictive. The disappointing GDP figures from Germany, France, and Italy today provide…
Nervous Calm Shrouds FX, while February 1 US Tariffs Look Less Likely Nervous Calm Shrouds FX, while February 1 US Tariffs Look Less Likely Reviewed by Marc Chandler on January 30, 2025 Rating: 5
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Fed Day: Vigorous Defense of Independence While Standing Pat

January 29, 2025
Overview:  Tariffs and the Federal Reserve meeting are center stage today. Yesterday, the White House reiterated that tariffs on Canada and Mexico could be announced this weekend. The Canadian dollar is softer, and the Bank of Canada is widely expected deliver a quarter-point cut today and hint at a pause. There is practically no question about th…
Fed Day: Vigorous Defense of Independence While Standing Pat Fed Day: Vigorous Defense of Independence While Standing Pat Reviewed by Marc Chandler on January 29, 2025 Rating: 5
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