The Morning Commentary: “The Law of the Jungle”

Foreign Exchange - Morning Commentary
“The Law of the Jungle”
Share this story:
Alan Rose
Alan Rose
Foreign Exchange Head Trader
Uncertainty and volatility will be the two key words to characterize the nature of the markets in the short term. Geopolitics, trade tensions, Fed policy, U.S. and global equity performance, U.S. November elections, etc. will continue to provide angst and anxiety for those that are involved in the markets.
Chinese President Xi made a highly anticipated speech in Shanghai and markets were hopeful that President Xi would be taking a more conciliatory tone toward the upcoming meeting with President Trump and future U.S. – China trade talks. It was not to be as he strongly denounced the “law of the jungle” and “beggar-thy-neighbor” trade practices directed at the U.S. and failed to announce any new major policy initiatives. Asian markets reacted poorly with almost all Asian equities down sharply with a ripple effects for related currencies and interest rates.
Even with the imposition of new Iranian sanctions announced by the U.S. this morning, equity markets have found some equilibrium and have stabilized. European equities have bounced off of their lows and U.S. equities have opened mixed following a wild and wooly week. U.S. and G7 interest rates are broadly unchanged.
Heading into the key midterm elections tomorrow, followed by the Fed meeting on Wednesday, we would not expect any outsized moves today or tomorrow as many investors and traders are sticking to the sidelines for now. Tuesday evening and Wednesday morning could provide a lot more fireworks if the expected November election results go awry.
If we can help you with any Foreign Exchange needs, please email or call (800) 447‑4133.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Facebook Twitter LinkedIn Google Plus YouTube
Investment and Insurance Products:
Are Not insured by the FDIC or any other federal government agency
Are Not deposits of or guaranteed by a Bank or any Bank Affiliate
May Lose Value
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Unsubscribe from this list  |  Update email preferences
This message has been sent to Please do not reply to this email. To ensure the delivery of future emails, please add to your email address book or safe sender list.
Copyright ©2018 City National Bank – All Rights Reserved.
350 South Grand Avenue, Los Angeles, CA 90071
City National Bank is a subsidiary of Royal Bank of Canada.
Equal Housing Lender
NMLSR ID# 536994 | City National Bank Member FDIC


Popular posts from this blog

Acquisitions or Alliances: What's Your Growth Strategy?