us dollar index

Callum Thomas

This week it's the US Dollar Index. Unless you've been living under a rock (or maybe that saying should be updated - unless you've been living out of range of wifi), you will have noticed 2 key things about the US dollar index: 1. The US dollar bull market seemed... Show More

Mathan Somasundaram

Local market climbed back higher gradually on the back of strong metal prices. Local market still struck in the narrow trading range since May. US market and geopolitics remain the macro overhang while reporting season is driving substantial volatility. Growth stories missing guidance or weak outlook statement are facing 15-20%... Show More

Mathan Somasundaram

Local market opened positive on better commodities and currency before pulling back to finish flat. Commodities drove market higher while banks gave up initial optimism. The best performing sectors were Staples, Utilities and Miners while the worst performers were Gold, IT and Property Trust. On the stocks….(1) MTS > sales... Show More

Callum Thomas

As the Fed meets to make its June monetary policy decisions, the consensus (and my view) is that they will hike interest rates again. This will add to the interest rate differential support for the US dollar and driver further policy divergence. This comes at a time where the US... Show More

Mathan Somasundaram

Local market started weak and then sentiment nosedived as more details of the White House debacles filtered through the media and drove US futures lower. The big risk with US politics at this point is…anything could happen. Market hates uncertainty…and volatility indices are at historical lows…something should give and the... Show More

Callum Thomas

Implied volatility is a well known indicator for the stock market e.g. the CBOE VIX Index, with spikes and troughs in the index generating useful market timing signals. But what about the foreign exchange markets? Today's chart shows the average US Dollar option volatilities across developed market currencies, and the... Show More

Mathan Somasundaram

Market moved up again on weak sentiment with fundamentals remaining negative. Geopolitical risks in Turkey and Germany will add to the uncertainty for global markets. Local markets have reached 5600 again and weakening local economic outlook and emerging market risk will weigh on the index. The local market is at... Show More

Callum Thomas

The below chart appeared in the latest edition of the Weekly Macro Themes http://www.topdowncharts.com/single-post/2016/11/25/Weekly-Macro-Themes---25-November-2016 and shows the well known US Dollar Index (or DXY) vs the average 10-year government bond yield differential across the G10 currencies. There appears to be a pretty clear relationship between the interest differential indicator and... Show More

Mathan Somasundaram

Market jumped higher on the back of US market bounce while overall macro concerns remain. There were clear signs that short covering popped the market from the open before rising tide raised all sectors into positive territory. Global macro remains uncertain with new US leadership policy settings delivering contradictory and... Show More