Day: February 12, 2021


Dollar’s recent weakness – Blip, not new trend

In the past nine weeks major currencies and global equity markets have traded broadly in line with our expectations.

The US Dollar has traded in a very narrow range, confounding consistently bearish market expectations. Similarly, most emerging Asian currencies have barely moved, pointing to the ability and willingness of Asian central bank to intervene in FX markets in a bid to manage both the volatility and directionality of their currencies.Read the rest


Global Letter: Rising US inflation concerns

Markets are starting to fret: it is a close call, but we are slightly more sanguine.

Inflation is now back on many minds. And this matters because, as go inflation expectations, so go bond yields, and thence asset prices, exposed leveraged entities, official interest rates, and more.… Read the rest


JAPAN: Mori will resign but controversy will hurt Suga

Yoshiro Mori, former prime minister and president of the Tokyo 2020 Olympics organizing committee, indicated on Thursday, 11 February, that he would step down amidst a growing backlash to sexist remarks about the role of women in meetings. Mori had previously “retracted” his remarks but resisted calls to resign despite mounting protests at home and abroad, the resignation of hundreds of volunteers, and behind-the-scenes pressure from sponsors and International Olympic Committee (IOC) officials.… Read the rest


ASIA: Weekly politics update

Below is the weekly update of political developments across East Asia. Please do not hesitate to contact us if you want to discuss any of the countries mentioned in more detail.

CHINA: High-level rebuke of energy agency may signal fresh coal crackdown

In an unusually blunt public statement, environmental inspectors authorized by the Communist Party’s Central Committee harshly criticized China’s National Energy Agency (NEA) for failing to appropriately weigh environmental concerns when approving new power plants and coal mines.… Read the rest