Forex Weekly Outlook – Commodity Currencies Surge on Peak Inflation Theories

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. The US dollar pulled back this week after softer-than-expected CPI and PPI inflation data out of the U.S. Commodity linked currencies surged. The South African rand increased 3.8%, the New Zealand dollar rose 3.6% and the Australian dollar rallied 3.0%. The inevitable … Continue reading “Forex Weekly Outlook – Commodity Currencies Surge on Peak Inflation Theories”

Emerging Markets Longest Streak of Withdrawals Ever with Risk Spread Contagion

Emerging markets have seen the longest streak of withdrawals on record, for five straight months flows have been aggressively flowing out. The soaring US dollar is causing systemic de-risking and deleveraging throughout the global periphery and frontier emerging markets. Liquidation and default risks are high in areas like private equity and venture capital. These types of reactions feed on with higher interest rates, stymieing growth and increasing risk. In July outflows by international investors in EM stocks and domestic bonds … Continue reading “Emerging Markets Longest Streak of Withdrawals Ever with Risk Spread Contagion”

Forex Weekly Outlook – US Dollar Surge Reversed in July vs JPY, CHF, CAD, AUD and NZD

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. The rise in the US dollar continued with the dollar index as a measure, but even then, well off its highs. A good reminder that Foreign Exchange pertains to individual currency situations. The DCX index is weighted more toward the Euro and … Continue reading “Forex Weekly Outlook – US Dollar Surge Reversed in July vs JPY, CHF, CAD, AUD and NZD”

Forex Weekly Outlook – US Dollar Strength Fueling Emerging Markets Credit Contagion

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate. The rise in the US dollar continues with Euro striking parity for the first time since 2002, and the strongest against the yen since 1998. The Bloomberg Dollar Spot Index hit its highest level on record, eclipsing the peak from the Covid-19 … Continue reading “Forex Weekly Outlook – US Dollar Strength Fueling Emerging Markets Credit Contagion”

Saudi Arabia Tadawul Stock Exchange to Launch Single Stock Futures

The Arab world’s biggest bourse, Saudi Arabia’s Tadawul exchange, plans to launch single stock futures on July 4 with the underlying stocks selected from the largest and most liquid publicly listed companies. The move is aimed to enable local and international investors to hedge and manage portfolio risks more effectively. The Kingdom is utilizing its resumed power in financial markets through high oil prices. Saudi authorities have introduced a raft of reforms to attract overseas share buyers and issuers as … Continue reading “Saudi Arabia Tadawul Stock Exchange to Launch Single Stock Futures”

Indian Job Postings Hit All Time High in September

The Indian job market continues to expand, for the third consecutive month in a row job openings are picking up. The latest Naukri JobSpeak report had 2,753 job postings an all-time high in September surpassing pre-COVID levels in September 2019 by 21 per cent. “The continuous positive growth of the IT-software/software services sector has enabled major IT hubs to outperform other cities in the annual growth charts, it said. Bengaluru (133 per cent), Hyderabad (110 per cent), Pune (95 per … Continue reading “Indian Job Postings Hit All Time High in September”

Turkish Lira Slides to Seven Month Low, State Banks Sell US$1.5 Billion To Stem Fall

Turkey’s Lira hit a 7 month low after the U.S. assassinated Iranian Maj. Gen.Soleimani in an airstrike. Iran’s Supreme Leader Ayatollah Ali Khamenei Swore retribution after the US Turkish state lenders sold up to $1.5 billion to stem the lira’s fall on Friday,

Saudi Arabia FTSE Russell Emerging Market Index Attracts Another $1.58 Billion

The Arab world’s biggest bourse, Saudi Arabia’s Tadawul exchange, third phase of inclusion in FTSE Russell’s emerging market index is set to attract about $1.58 billion (Dh5.8bn) in passive foreign inflows. KSA joined the MSCI Emerging Market benchmark last year. 

The Fragile Five Emerging Markets Contagion Risk

The emerging markets known as the ‘fragile five’; Brazil, India, Indonesia, South Africa and Turkey have shown that contagion is unavoidable when you are a high interest-rate economy with a trade deficit dependant on foreign capital to balance its books.