Bank of Japan Monetary Policy Minutes : おはようございます。

The Bank of Japan announced Tuesday night that it was keeping its monetary policy steady, and reported its price and economic forecasts unchanged. The 2018 outlook for the Japanese economy is the grow at a moderate pace with both corporate and household demand strong. All being supported by the highly accommodated financial conditions present in … [Read more…]

Heavy Work

  The US dollar closed last week on a firm note, but it has been unable to build on its gains to start the new week.  News that Germany’s SPD agreed to enter formal negotiations with Merkel’s CDU/CSU alliance saw the euro open in Asia around a half a cent higher.  However, sellers emerged near $1.2275 but … [Read more…]

Rearview to Preview…

  EM FX ended last week on a soft note, but still enjoyed a relatively positive tone for the week as a whole.  Best performers last week were MXN, ZAR, and CNY while the worst were ARS, TRY, and CLP.  With little on the horizon to give the dollar some traction, we think EM FX … [Read more…]

CoT Report

    10-year note: Currently net short 89.3k, down 107.6k.(Futures Only). A Bloomberg article last week about China beginning to weigh slowing or halting purchases of U.S. Treasurys gave the bond market the jitters.  Already, fixed-income investors/traders – as well as others – were wondering if the three-decade-old bull market in bonds was over.  This … [Read more…]

A little bit of this and a little from that. For today’s market wrap.

•The US dollar remains under pressure •US yields are at multi-year highs •Focus on Senate to avert US government shutdown •Sterling remains the strongest major currency this week despite disappointing retail sales today •Ahead of Fitch’s review, Spain’s 10-year premium over Germany is the smallest since 2010 •MSCI Emerging Market Index posts new highs since … [Read more…]