The British pound and the New Zealand dollar were the strongest currencies last week, while the Swiss franc, the US dollar, and the euro were the weakest. Volatility decreased markedly over this period, and next week may see even less volatility.
European and international stocks are outperforming as the US trade initiatives seek to rebalance international trade, which will of course be reflected in lesser need for USD (capital account reflection).
The euro initially pulled back during the course of the trading week, only for it to then turn around and show signs of life again. At this point in time, I think the 1.15 level is going to continue to be a major resistance barrier.
Media outlets will remind us that the S&P 500 is down about 10%, but you may be feeling a little more angst than you think you should for a 10% correction. After all, this year has been much more challenging than your normal 10% correction.
The U.S. dollar has been experiencing a sharp decline this year amid rising concerns over the economic fallout from potential new U.S. tariffs. Here is a brief review of some ETFs that may strengthen while the greenback weakens.
The EUR/USD did not move violently on the interest rate cut from the ECB, this because financial institutions expected the move, and because their attention was elsewhere.
This week won’t have much on the economic calendar, with the S&P Global Flash PMI the lone standout data point. Government auctions will draw more attention.
Recently, the trend toward deglobalization has been accelerated by a push to reinvent the global trading system on the part of the Trump administration.
Are gold’s outperformance and long-term potential of any real value to an investor? The answer -- and this might shock you -- is an emphatic “no.” Here’s why.
Previous burst bubbles spawned bigger bubbles necessary for system reflation – collapsing telecom debt and junk bonds were supplanted by a much bigger boom in mortgage credit.
