Markets

Highlights The US dollar is mixed today and the real feature is the euro’s strength.  Asian central bank reserve diversification and model-driven leveraged accounts appeared to help drive the euro higher.  News that US Treasury…

One of the surprises of the year has been the increased internationalization of the yuan, even though the capital account has not been liberated and the currency remains tightly managed. We were skeptical of the significance of the yuan…

I am an affiliate of INO, a website which is geared to individual investors. I haven't posted much from their site here but I thought their latest video on gold was interesting so I'll say a few words about it. (disclosure: as an affiliate…

Highlights The US dollar is trading heavier today as Asia and Europe sold into the strong gains scored in North America yesterday following yesterday’s surprise Chinese rate hike.  Of the majors, the euro and Australian dollar are…

This is the Golden Age of Fed Watching. And we’ve done our fair share. On a day when we have speeches from 5 Fed presidents and 1 governor, what more is there to say that hasn’t already been said? Faith in the Fed is high, and capital…

by Win Thin People’s Bank of China surprised markets with a 25 bp hike in early North American hours, taking the 1-year lending rate to 5.56% and the 1-year deposit rate to 2.5%.  This was the first official rate hike since December…

Highlights The US dollar has been put back in the driver seat as the Central Bank of China raised its one-year lending and deposit rate by 25 bps.  In effect, the move by the Chinese has drawn capital out of risk and reaffirmed the…

Highlights The dollar continued to edge higher through the Asian session, even making ground against the yen. EUR/USD slipped back towards $1.39, erasing the gains from the North American session, ahead of Germany’s ZEW report out later…

Highlights The US dollar is broadly higher as the correction seen before the weekend was extended through the Asian session.  In Europe, the greenback’s gains have been pared, but it remains above last Friday’s high against the…

How to value gold is an age old frustration. As every schoolboy knows, it yields nothing and so can’t be valued on cash flows. It has very little industrial use. There is, however, a natural human tendency toward the use of currency so gold…