Author: esanchez

FX as a Trade War Tool? By Blu Putnam, Chief Economist, CME Group Highlights Chinese yuan has been sensitive to developments in the trade war Hidden policy agenda behind fluctuations in yuan vs US dollar? Yuan rises to 6.7 per USD when US-China trade deal seems likely Yuan hits ceiling of 7 per USD as tensions … Read More

Chinese Yuan: Beware of Boundaries By Blu Putnam, Chief Economist, CME Group Highlights Chinese yuan’s value against dollar sways with level of trade war tension Yuan appreciates when US-China tensions ease, trade deal seems likely When prospects dim for US to lift import tariffs, yuan tends to depreciate Yuan seems to have a ceiling of seven … Read More

Copper’s Options Paradox and Three Signs Oil Prices Are Hitting Bottom By Erik Norland, Senior Economist, CME Group Copper’s Options Paradox Copper options implied volatility is trading near record lows While copper prices track China’s growth, options follow US monetary policy Continued tight US monetary policy could elevate copper implied volatility If Fed decides to cut … Read More

What Hurts and Helps Equity Sectors, Fed in Focus By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group How Interest Rates, Inflation Impact Equity Select Sectors Higher short-term rates benefit financials but hurt utilities, real estate High volatility helps utilities, consumer staples and communication services In past three years, tech stocks have … Read More

Flood Havoc and Interest Rates Convergence Between U.S. and UK By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Flood Havoc Flooding delays crop seeding and imperils livestock, raising their prices Flood damage adds to farm losses from ongoing trade war with China Could U.S. exports of corn, soybeans be disrupted by … Read More