Swiss Franc and Japanese Yen are Becoming Favored Safe Havens
The Swiss franc and the Japanese yen are emerging as “more attractive” alternatives to the dollar as safe-haven assets, ING says. “With the possibility of grim U.S. economic and pandemic prospects starting to weigh on USD now, both CHF and JPY may be looking at more gains vs the greenback,” ING FX strategist Francesco Pesole […]
Eurozone Economic Sentiment Improves But Consumers Wary
Economic sentiment rises further but there are concerns about unemployment risks and consumer spending looks fragile. The following is a selection of analysts’ comments. The euro extends losses against the dollar after eurozone data showed the unemployment rate rose in June and consumer confidence deteriorated in July. The eurozone unemployment rate climbed to 7.8% in […]
U.S. Economy Contracts at Record 32.9% Rate; Jobless Claims Rise to 1.43 Million
The U.S. economy contracted at a record 32.9% annual rate last quarter and weekly jobless claims rose to 1.43 million, amid signs of a slowing recovery. The Commerce Department’s initial estimate of U.S. gross domestic product in the second quarter is the steepest drop in records dating to 1947. The decline came as states imposed […]
How Business Surveys Became the Latest Casualty of the Pandemic – Covid-induced global slowdown
For months markets have run on the expectation of a V-shaped recovery out of the Covid-induced global slowdown. Recent monthly business surveys have projected a sharp rebound, with the upside surprise boosting equities. These numbers are a mirage. Lurking behind them are methodological shortcomings that investors are often willing to ignore in their thirst for […]
Three Reasons Why Market is Wrong on USD/JPY, FED kept interest unchanged
As expected, the Federal Reserve kept its benchmark interest rates unchanged near zero. The central bank said in a statement: “The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, (…) The coronavirus outbreak is causing tremendous human and economic hardship across the United […]