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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- The strong beat in retail sales earlier has been supporting the US Dollar, which keeps reaching new highs against major crosses.
- We previously saw that preference for the USD could continue in the near to medium as the Fed taper nears; US policymakers are expected to announce the beginning of the tapering in November for a December start (consensus views 15USD reduction in asset purchases every month).
- Hence, the 'contraction of liquidity' could lead to further appreciation in the USD, which would continue to support US equities relative to other (DM/EM) equity markets.
- The chart below shows that US stocks (SPY) generally outperform the rest of the world equities (VEU) when USD rises broadly.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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