Markets Like What They See and Hear

The combination of a 50 bp cut in China's required reserve ratios and anticipation that the European finance ministers sign off on the second aid package for Greece has lifted equity markets and most of the non-US dollar currencies.

Europe Still Dominates the Headlines

The vagaries of Europe's debt crisis continues to be the most important driver of the short-term price action in the foreign exchange market. Indications that Greek New Democracy leader Samaras would sign a letter of commitment to the aid…

The BOJ Surprises, Weakens Yen

Central banks' ability to surprise the market remains even in these trying times. It was the Bank of Japan's turn today. It surprised the market in two ways. First, it expanded its asset purchase plan by JPY10 trillion ($128 bln).…

Schrodinger’s Cat in Athens

The austerity regime being adopted throughout Europe, by surplus and deficit countries alike, amid deleveraging, begs the question of where will aggregate demand come from? Moreover, iIf Greece can lower its debt burden by transferring some…

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