A daily summary and commentary of events and factors that affect the global markets, with a particular emphasis on the foreign exchange markets.
Watch What You Say
Share this story:
Richard Pontius Foreign Exchange Advisor
The dollar remains on firmer footing today following comments yesterday from Treasury Secretary Janet Yellen. Yellen initially commented that U.S. interest rates may “have to rise somewhat” to make sure that the economy does not overheat. As her comments hit the news wires, U.S. equity markets fell while 10-year yields rose slightly and the dollar benefitted modestly. Later came a clarification from Yellen in which she stated that tighter policy was “ not something I’m predicting or recommending.” While the market’s reaction was not sizable, the damage was done. The interest-rate-sensitive NASDAQ ended 262 points lower on the day. The DJIA and S&P were able to recover early losses to end modestly in positive territory.
Today has brought the initial glimpse of what we might see in terms of payroll data scheduled for Friday. The ADP measure of employment change reported an increase of 742,000 jobs. This was below expectations for a reading of 850,000. Tomorrow brings initial jobless claims before the Labor Department’s release of non-farm payrolls on Friday. Nearly 1 million jobs are expected to have been generated during the month of April. Additionally, the unemployment rate is expected to fall to 5.8% from 6.0% in March.
As today opens, the dollar is once again slightly stronger following yesterday’s risk-off session. Commodity prices continue to be well bid, with copper once again reaching a record high. A broad range of commodities, including food groups, oil and gold, are all up on the day. Hints of inflation and rising prices should be dollar supportive in the near term but are not expected to have anything more than a brief reprieve from the sizable losses that have taken place since late March.
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:
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
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. City National 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.
Here's what this indicator is saying about US stocks right now. ACTIVE INVESTOR WEEKLY EDITION: January 21, 2022 View in a browser FIDELITY VIEWPOINTS ® WEEKLY EDITION: January 21, 2022 Bollinger band stock signal Here's what this indicator is saying about US stocks right now. Read more CHART OF THE WEEK Inflation and corporate consolidation US industries have become
Learn how to keep all your accounts—not just the ones at Fidelity—secure. November 18, 2021 View in a browser FIDELITY VIEWPOINTS ® WEEKLY EDITION: November 18, 2021 What to do after a data breach Learn how to keep all your accounts—not just the ones at Fidelity—secure. Read more What's ahead for your RMDs Make sure to take your required withdrawals this year, then start to plan ahead.