Wide triple-digit price gyrations in equities last week left investors "scratching their heads." The back and forth economic and geopolitical data and news prompts almost immediate reaction in the markets.
The Singapore dollar is the latest currency to register a sharp unexpected drop following action from the Monetary Authority of Singapore to ease monetary policy, which is fast leaving the United States and Switzerland as the only two countries not trying to devalue their currencies.
Crude oil fell after Iraq said it’s producing a record amount of crude. Swiss stocks rebounded from a one-year low and the franc weakened, while Chinese shares tumbled the most in six years as regulators cracked down on margin lending.
The Euro/Swiss franc was the epicenter of the turmoil after the Swiss National Bank surprisingly pulled the rug from under the bulls’ feet on Thursday and let the dormant currency pair plummet to below parity from 1.20.