Entering text into the input field will update the search result below

Greenback Remains Soft Ahead Of Employment Report, But Reversal Possible

Marc Chandler profile picture
Marc Chandler


  • A deal among OPEC+ is helping underpin oil prices, and July WTI is higher for the fourth straight session.
  • The greenback's four-week climb against the yuan is ending this week with about a 0.6% decline.
  • The eurozone economy is expected to contract by 8.7% this year and grow by 5.2% in 2021 and 3.3% in 2022.

Overview: The modest loss in the S&P 500 and NASDAQ yesterday did not signal the end of the bull run. All the markets in the Asia-Pacific region rallied, with the Hang Seng among the strongest with a 1.6% advance that brought the week's gain to around 7.8%. South Korea's Kospi was not far behind with a weekly gain of 7.5%. In the past two weeks, the MSCI Asia Pacific Index is up nearly 10%. European shares are higher by more than 1% in the morning turnover. The Dow Jones Stoxx 600 has gained almost 9% in the past two weeks, which the S&P 500 matches coming into today, where it is poised for additional gains. While stocks are rallying, benchmark 10-year yields have backed up. Interest rates are a bit firmer today. The US 10-year is up 17 bp this week to 85 bp, ahead of the employment report. Germany's 10-year Bund yields are a little higher today and up nine basis points on the week at minus 31 bp. Peripheral yields are little changed today, but Italy's 10-year yield is off six basis points this week, and Greece's benchmark yield is down 14 bp. The Antipodeans remain the standouts among the major currencies, and with today's gains (~0.5%) are up about 4.7% on the week. The yen is little changed but is the only major currency to have lost ground to the dollar this week (~1.3%). Emerging market currencies continue to recover. The JPMorgan Emerging Market Currency Index is extending its advance to the seventh consecutive session today. In fact, since May 15, it has been down only twice. Note that Moody's reviews Turkey and Russia's credit rating today. Gold's shine has dulled a bit, and its loss today (~-0.2%) brings week's loss to more than 1%, and it is the third consecutive weekly loss. A deal among OPEC+ is helping underpin oil prices, and July WTI is higher for the fourth

This article was written by

Marc Chandler profile picture
Marc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense

Recommended For You

Comments (1)

The figures from the EU are starting to get more realistic. It took some time.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.