currencies

Highlights The US dollar remains on its back foot. The main driver remains the contrast between the likely trajectory of Fed policy in contrast to the ECB. Moody’s 1-notch downgrade of Spanish credit rating and news that Anglo-Irish needs…

by Michael Pettis I am often asked, especially by my Peking University students, to list what I think is the sequence of steps China will take to address its economic imbalances.  Remember that rebalancing, in the Chinese context, has…

In yesterday's daily note, David Rosenberg showed us this chart of the wild swings in the foreign exchange markets since the beginning of 2007. His interpretation of the chart is that it demonstrates a "series of rolling currency…

Highlights The US dollar remains soft, but the downside momentum seen in recent days appears to be ebbing as new catalysts are awaited. The dollar’s slide is not over and bounces are expected to be shallow and short-lived. The main…

Highlights The US dollar initially extended yesterday’s recovery, but reverse lower in Europe, despite elevated tensions in the periphery of Europe. Optimistic comments by ECB’s Stark, seeming to signal another step on the exit strategy,…

The last post by Win Thin demonstrates that Emerging market countries that are doing the best in this difficult economic environment are feeling serious currency pressure. Brazil is looking for a way to deal with the volatility associated…

from BBH's Win Thin on capital controls in Brazil Finance Minister Mantega said that Brazil is considering a tax on short-term fixed income investments but not on long-term. No further details were given, but he noted that the central bank…

India:  Earlier today India lifted the cap on foreign ownership of government and corporate bonds.  This had been anticipated, but it runs counter to the rash of media reports suggesting that rise of beggar-thy-neighbor policies…

The weekly jobless claims are not often the stuff that moves the foreign exchange market, but the disappointment with today's data is noteworthy and hitting the the fx market as the foreign currencies began recovering from the profit-taking…

Highlights The US dollar is recouping some of its recent losses against most of the major and emerging market currencies. Softer than expected New Zealand GDP, followed by the disappointing euro zone flash PMI, the renewed widening of…