currencies

Things I am Going to Think About On Vacation Like others, I try to clean off my desk before my summer vacation.  This year it is particularly difficult because there seems to be several unresolved issues.  I will mull them over…

Highlights The US dollar continues to trade heavily against the euro and yen, but it is consolidating against the other major currencies.  Poor US economic data  and more benign news streams from Europe continues to fuel the…

Highlights US dollar was mostly weaker vs. the majors, up modestly only vs. AUD and CAD as the euro made another new high for the cycle near 1.2950. By ending the day at the highs, further euro gains look likely in Asia today. The yen and…

The 0.1% rise in US industrial output in June seems to defy expectations for the first decline since mid-2009, but the headline is deceiving. Manufacturing, the key component actually fell 0.4%. The headline was flattered by a 2.7% jump in…

Highlights The US dollar is broadly lower against the major foreign currencies.   The combination of Fed’s recognition of downside risks to the US economy and inflation coupled with relatively smooth bond auctions from Spain and…

The minutes from the recent FOMC meeting were not as dovish as some had expected and this seems to have encouraged some profit-taking on short dollar positions. As widely expected the Fed to cut inflation and growth forecasts, but the…

Highlights The US dollar is consolidating its recent losses in largely uneventful activity.  Sterling is the main exception to the generalization.  Boosted by the firmer than expected CPI report yesterday and today’s favorable…

Highlights US dollar was weaker vs. the majors, as the euro recovered to end the day higher after it fell to its lowest level vs. the dollar since July 6.  Moody’s downgraded Portugal to A1 from Aa2, but this was offset by strong…

Spain's Finance Minister Salgado says the downgrade of Portugal earlier today does not put pressure on Spain. It is true as far as it goes, but of course Spain's problem transcends Portugal. The ruling Socialists in Spain are seven seats…

Highlights The US dollar is broadly mixed as the news stream buffets the foreign exchange market.  A better than expected reception to  the Greek T-bill auction helped mitigate the reaction to Moody’s decision to cut Portugal’s…