Week Ahead: The War And Anticipated Policy Responses Drive The Capital Markets

Marc Chandler17.13K FollowersFollow5ShareSavePlay(19min)CommentsSummaryMay WTI peaked on March 9 near $113.40. Last week, the average close was a little below $95.The wide swings in the Dollar Index arguably reflect a market that lacks near-term conviction.We note that the rolling 30-day correlation of change between the Dollar Index and the dollar against the offshore yuan is near 0.75, the highest since last August.Among the G10 countries, the UK has seen the largest swing in this year's rate expectations.In December, Canada's household survey showed a 10.1k increase in employment, while the SEPH reported a decline of 35.4k jobs. IURII KRASILNIKOV/iStock via Getty Images There are two main drivers in the foreign exchange market: war and the anticipated monetary policy response. May WTI peaked on March 9 near $113.40. Last week, the average close was a little below $95. Brent has been hitThis article was written byMarc Chandler17.13K FollowersFollowMarc Chandler has been covering the global capital markets in one fashion or another for 40 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense