Macroeconomic Environment Review In May, the US Dollar performed strongly, with the US Dollar Index rising by 2.8%, marking its second rebound this year. This indicates a shift from a bearish trend to a more range-bound market for the USD, as the DXY traded between 101 and 105. The overall trading pattern of the USD […]
Macroeconomic Environment Review In April, the US Dollar traded within a certain range while different currencies performed differently. The Swiss Franc (CHF) performed the best, followed by the Euro (EUR) and the British Pound (GBP), while the Japanese Yen (JPY) and commodity currencies experienced losses. In the first week of May, the JPY and commodity […]
Macroeconomic Environment Review The US Dollar declined 2.5% in March largely offsetting the earlier gains in February. The weakness of the greenback in March was broad-based but not uniform. Among the major currencies, the Euro, the Japanese Yen, the British Pound, and the Swiss Franc performed best versus the Dollar, while the commodity currencies lagged […]
Macroeconomic Environment Review After experiencing four months of consecutive declines, the US Dollar Index rebounded by 3.0% in February. The strength of the US Dollar was widespread, but not uniform. The Yen was the primary loser, falling by 4.8% against the Dollar due to increased uncertainty regarding the future policy path under the incoming BoJ […]
The name of the game for the year that’s now behind us was clearly “volatility” as most money markets experienced a sequence of ups and downs that kept investors and money managers alike guessing for direction. Looking ahead into 2023, will this change and should we expect calmer seas? In our opinion, that will not […]
Macroeconomic Environment Review In January, the US Dollar Index fell by 1.3%, which was half the amount it had fallen in December. However, Dollar weakness was not evenly spread, as some currencies, such as the SEK and NOK, fell due to a property slump and weaker oil prices respectively, while others, such as the AUD […]
Macroeconomic Environment Review The value of the US dollar has decreased since our last communication in December. Compared to its peak in September, it has dropped 9.8%. The Japanese yen has had the most notable increase, supported by the country’s central bank’s change in its yield curve policy. The British pound has also risen, influenced […]
Macroeconomic Environment Review FX markets were driven by unexpected events and developments in 2022, notably the Ukraine war and the rapid adjustment in monetary policy. The big winner was the USD although it lost some of its gains in recent weeks. In our view, soft-landing, hard-landing or something in-between are all possible outcomes for 2023 […]
Macroeconomic Environment Review Currency markets remained broadly directionless during the past month driven by changing market perceptions of relative monetary policy adjustments. The US Dollar was mostly unchanged (the Dollar Index was just 0.6% weaker by the end of the month) but volatility was high and there have been significant moves by individual currencies in […]
Macroeconomic Environment Review Financial and currency markets are on a roller coaster driven by the fear of recession and hopes that central banks will have to slow the pace of tightening soon. Policy actions have compounded the volatility and forced central banks to intervene. The pillars of USD support are still in place, but we […]
