currencies

From Win Thin More and more EM policy-makers are complaining about currency strength, and we think it’s only a matter of time before other countries resort to capital controls to help ease appreciation pressures.  Chile President…

The US industrial production fell 0.2% in Sept.  The market consensus was for a gain of the same magnitude.  This is the first decline since June 2009.  Manufacturing output fell 0.2%, utility output fell 1.9%, and mining…

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…

by Edward Hugh For reasons which aren’t worth going into now, I’m reading through a recent report by Deutsche Bank Global Markets Research entitled “From The Golden To The Grey Age” this afternoon. The report (all 100 pages of it, many…

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…

by Win Thin Markets have given a big thumbs down to the austerity measures announced by Hungary this week, with the forint and foreign currency bonds giving up some of their recent gains.  The government is still trying to go it alone…

Opinion seems nearly universal that what we are currently experiencing is not the typical business cycle with which we are familiar. Besides being the end of a long speculative bubble, and the magnitudes involved, the significance of what…

Highlights The US dollar remains soft, but within yesterday’s trading ranges, as the market awaits Federal Reserve Chairman Bernanke’s speech early in the North American session (8:15 EST/12:15 GMT) on “Monetary Policy Objectives and…

There hasn't actually been any "QE".   You've simply had the promise of QE2 and some attempts within the market to front run the actual implementation of the policy.  In reality, QE per se has nothing to do with the…

I think it's fair to characterize the situation with the Fed's Quantitative Easing Open Mouth Operations as somewhat out of control. Fears of a disorderly decline in the US dollar are certainly increasing. If anything, the US dollar is…